Intel has re-entered investors' radar with its outstanding performance in April. The company's shares rose by 51 percent in just eight trading days, adding over $100 billion to its market value. This performance marks the strongest surge recorded in a similar timeframe since the company's IPO in 1971.
Positive developments over the past two weeks have revitalized investor confidence in Intel, a company long criticized for losing its competitive edge. The company's shares also recorded their best weekly performance since January 2020. With these recent developments, Intel's market value has climbed to $313 billion, marking its highest valuation since the dot-com era.
Good News Revitalizes
Several critical developments are behind the rapid rise in shares. At the beginning of April, Intel announced it would buy back half of a manufacturing facility in Ireland from Apollo Global Management for $14.2 billion. This move was interpreted as a significant sign of the company's shift towards a growth strategy.
This development was followed by Intel's announcement that it would participate in Elon Musk's pioneering Terafab project. Under this project, Intel is expected to play a role in developing semiconductors for Tesla, SpaceX, and xAI. Immediately after, Alphabet's Google committed to using Intel's next-generation Xeon processors in its data centers, further accelerating the rally.
As a result of all these developments, the company's shares have gained 69 percent in value since the beginning of the year. Investments from Nvidia, SoftBank, and the U.S. government also significantly contributed to this increase. The U.S. government's stake in Intel is currently valued at approximately $27 billion.
Doubts Not Entirely Dispelled
Analysts note that Intel's repositioning as a strategic manufacturing powerhouse is gaining increasing acceptance in the market.
Although the recent surge is remarkable, Wall Street maintains a cautious approach. Intel shares are still approximately 8.9 percent below their 2020 peak.
According to Bloomberg data, only 10 of the 52 analysts covering Intel recommend "buy," while 6 analysts suggest "sell." Looking at the long term, analysts paint a more optimistic picture. Intel is expected to report a loss of approximately $0.17 per share in 2026, but this figure is projected to turn into a profit of $0.33 in 2027 and $2.13 in 2029.
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