Chip stock Intel (NASDAQ:INTC) made a big splash in Thursday morning’s trading, up just over 3% thanks to a slate of new processors unveiled at its AI Everywhere event earlier today. The new processors, as the name of the event suggests, will all have a hand in improving AI operations, and that was enough to give Intel a boost. Better yet, there are signs the entire semiconductor market is on the rise, and that rising tide is lifting Intel’s boat as well.
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The news comes at an interesting time; while certainly, Intel’s AI Everywhere event was a substantial catalyst, it also comes as the Philadelphia Semiconductor Index hit a record high. It was up around 2.7% at one point in Thursday’s trading, which let it break the 4,095 point mark. That was a record high, as it’s up around 67% against the 52-week low. Many of the stocks in the index were up, and that’s given Intel a bit of a halo effect. Throw in new remarks from the Federal Reserve that suggest rate hikes will be off the table, and cuts may be coming in starting in 2024, and that was enough to get people thinking about making hardware purchases again.
Standing on Its Own Merits
But even as Intel gained thanks to the moves of the index, it also gained ground on its own, too. The new processors—now known as Core Ultra rather than “Core i”—are offering some impressive gains in overall performance and power efficiency. Being easier on the electric bills can’t hurt here, nor can better performance for the power bill’s buck. Reports note that the Core Ultra 7 165H, unveiled at the show, will offer 11% gains in “multi-threading performance,” which will make it a formidable force for laptops, particularly when compared to the offerings from other providers.
Is Intel Stock a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on five Buys, 18 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 71.13% rally in its share price over the past year, the average INTC price target of $38.11 per share implies 17.03% downside risk.
