Intel Stock Surges 6% as Chip Rally Reignites After Five-Day Losing Streak

Intel shares have rebounded. By midafternoon Wednesday, the stock was up almost 6%, building on Tuesday’s 2.4% gain and ending a five-day slide that had erased 16% of its value. For investors worried the drop might last, Wednesday’s rally suggests otherwise. Here’s what’s behind the recovery and why Wall Street analysts are raising their price targets, even as some worry that certain chip stocks may be overvalued.

Intel’s stock has risen over 200% this year, and other semiconductor stocks also climbed on Wednesday. AMD gained 7.5%, Qualcomm rose 3.5%, Micron added 4.1%, and Marvell was up 4.7%. This shows that investors are once again interested in chip stocks after the recent decline.

Wall Street analysts stayed confident during the losing streak. A Seaport analyst admitted that some chip stocks may be overvalued but believes Intel can grow into its current price. Benchmark raised its price target to $140 from $105 on Monday, after talking with company management boosted their confidence that Intel’s earnings potential is being underestimated.

Citi also increased its price target to $130 from $95 earlier this week. The firm expects the central processing unit market to grow 35% each year and reach $132 billion by 2030, thanks to rising demand from AI agent workloads. This strong long-term outlook supports the bullish view on Intel, and Wednesday’s rally shows that investors are ready to back it again.