New York, January 16, 2026, 10:06 a.m. ET — Regular session
- Intel shares hovered near flat in early trading, bouncing between gains and losses.
- Citi upgraded Intel to “neutral,” citing a packaging bottleneck that might shift orders elsewhere
- Attention shifts to Intel’s earnings report on Jan. 22 and any news on its foundry ambitions
Intel shares edged up 0.1% to $48.35 Friday morning, holding firm following a solid rally that has drawn renewed attention from traders.
Timing is key. Chip stocks have shifted on signs that demand for artificial-intelligence hardware remains steady, as investors gear up for a packed slate of U.S. earnings reports set to challenge high expectations.
Intel’s shares edged up roughly 3 cents by 10:06 a.m. ET, fluctuating between $48.14 and $50.15 during the session.
After Taiwan Semiconductor Manufacturing Co’s positive comments this week, the broader chip sector found new footing, easing concerns about overstretched tech valuations. “That’s been kind of squashed this morning with the news from Taiwan Semiconductor,” Alan Lancz, president of Alan B. Lancz & Associates, said Thursday. Reuters
On the Intel front, Citi shifted its rating to neutral from sell on Thursday, boosting the price target to $50 from $29. The move hinges on a bottleneck in “advanced packaging”—the chip assembly’s final phase—that could redirect orders to competitors. Citi analyst Atif Malik noted, “We believe Intel should benefit from the advanced packaging supply tightness at TSMC,” highlighting a “unique window of opportunity” for Intel to lure foundry clients, backed by U.S. government support. The Business Times
Advanced packaging has turned into a bottleneck for cutting-edge AI chips, where several chiplets are assembled and connected to high-bandwidth memory. If this capacity remains constrained, designers may have to look elsewhere — creating a possible opportunity for Intel’s contract manufacturing business, despite it still lagging behind the market leader.
TSMC is betting on strong demand. CEO C.C. Wei expressed he was “quite satisfied” after conversations not only with direct clients but also with cloud giants like Google, Amazon, and Microsoft. The company also announced plans to boost capital expenditures in 2026, potentially reaching $56 billion. Reuters
Intel’s position, however, isn’t without its caveats. Packaging hurdles might loosen, but any slip in execution—whether in manufacturing yields or customer ramp-ups—could swiftly send the stock reeling after its strong rally on turnaround hopes.
Intel plans to release its fourth-quarter and full-year 2025 results after markets close on Thursday, Jan. 22. The chipmaker will host a conference call at 2 p.m. PT, according to its statement.
Traders are zeroing in on that date as the next major catalyst. What will count are the guidance, any new hints from foundry customers, and how management frames AI-related demand—more than the usual daily volatility.
