New York, May 27, 2026, 09:01 (EDT)
- Intel traded at $124.90 before the open, up 1.1% after a 3.1% rise Tuesday to close at $123.52.
- Northland dropped its rating on Intel to Market Perform. The firm said Intel’s turnaround story is happening, but the price is now ahead of where even bullish 2027 forecasts put it.
- Intel CEO Lip-Bu Tan is on the way to Taiwan before COMPUTEX. He is set for meetings with TSMC, according to reports, and Intel has confirmed his keynote speech for June 2.
Intel shares gained in premarket trading Wednesday, up to $124.90 at 08:51 EDT, adding to recent chip-stock gains. The stock closed Tuesday up 3.1% at $123.52. One Wall Street firm said the turnaround story in Intel is looking pricey here.
Intel is starting to trade less like a struggling PC-chip maker and more like a potential AI winner. The shift comes as some investors bet on the company grabbing a piece of AI server spending. But Intel still has to show it can fix its manufacturing and make its foundry unit, which makes chips for other firms, into a steady, profitable part of the business.
The S&P 500 and Nasdaq closed at all-time highs Tuesday. The Philadelphia SE Semiconductor Index jumped 5.5%, also hitting a record, with traders piling into chip stocks on AI demand. Chris Zaccarelli, chief investment officer at Northlight Asset Management, told Reuters the tech surge is “reminiscent of the boom” at the end of the 1990s. Reuters
Intel’s next event is in Taiwan, with Tan heading there this week for meetings that will include Taiwan Semiconductor Manufacturing Co management, according to Investing.com, which cited unnamed sources. Intel said Tan would be in Taiwan but declined to comment on his schedule. “We don’t comment on Lip-Bu’s schedule or specific meetings,” the company said. Investing.com
Intel lands close to the action in a busy week for AI hardware. It’s eyeing TSMC, still the top name in advanced chipmaking, for a challenge. Nvidia boss Jensen Huang and AMD CEO Lisa Su are also on the COMPUTEX lineup in Taipei, with events starting June 1.
Northland’s downgrade slowed the rally. The firm lowered Intel and Astera Labs to Market Perform. It pointed to high valuations and said hyperscalers — the largest cloud firms, which build huge AI data centers — may cut infrastructure spending in 2027 if cash gets tight.
Northland’s Gus Richard has pulled the price target on Intel. Investing.com says even if Intel’s data-center unit jumps 40% in 2027, shares would still be trading at a steep 38 times Northland’s $3.20 earnings estimate per share.
Intel bulls got more to point to. The chipmaker posted first-quarter revenue of $13.6 billion in April, a 7% gain from last year, and projected second-quarter revenue between $13.8 billion and $14.8 billion. Revenue for its Data Center and AI unit climbed 22% to $5.1 billion, and Intel Foundry posted a 16% rise to $5.4 billion.
Profit remains an issue for Intel. The company reported a first-quarter net loss of $3.7 billion. Chief Financial Officer Dave Zinsner called out “unprecedented demand for silicon” in the quarter. CEO Tan said demand stayed ahead of supply, with particular pressure on Xeon server CPUs. CPUs are the main chips used in servers and computers. intc.com
The downside is clear enough. If AI data-center spending slows, or Intel can’t scale its 18A manufacturing with steady, customer-level results, or if foundry losses stay up, investors may question if the stock bakes in too much recovery already. Reuters cited SemiAnalysis President Doug O’Loughlin: “TSMC is the real bottleneck,” a comment that sums up both Intel’s opening and the gap it still needs to close. Reuters
Right now, Intel is still priced as an AI and manufacturing bet, not a completed turnaround. Wednesday’s open is set to show if buyers are willing to keep chasing that risk after the recent big rally.
