Key Highlights

  • Shares are trading at $111.11, up 9.95% in Thursday's session.
  • CEO Lip-Bu Tan said memory chip prices have jumped 500% to 700% amid an acute Supply shortage.
  • The rally is reinforced by reported talks between Intel and SK hynix to produce memory chips at Intel's underutilized Ohio fab.
  • A Melius Research note suggested shares could nearly double to $200 within two years if Intel lands 14A commitments from major customers.

Memory Shortage Comments and Ohio Fab Talks Drive the Rally

Intel (NASDAQ:INTC) shares surged nearly 10% in Thursday's session, testing multi-month highs, after CEO Lip-Bu Tan said memory chip prices have jumped 500% to 700% amid an acute supply shortage, comments that also lifted Micron (NASDAQ:MU) and SK hynix (NASDAQ:SKHY). The rally was reinforced by building momentum around Intel's reported talks with SK hynix to produce memory chips at Intel's underutilized Ohio fabrication facility.

Bullish Research Note Points to 14A Customer Wins

The move builds on the prior session's 4% gain and follows a Melius Research note suggesting shares could nearly double to $200 within two years if Intel lands 14A process node commitments from Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA), and a hyperscale cloud provider, adding to a wave of bullish analyst commentary this week.

Stretched Valuation and Foundry Losses Temper the Enthusiasm

Even so, some on Wall Street are flagging a stretched valuation near 60 times Earnings against continued GAAP losses and a Foundry segment still burning about $2 billion per quarter, a gap that underscores how much of today's rally is built on future customer wins rather than current profitability.

14A Customer Announcements Are the Next Catalyst to Watch

Intel shares are rallying on a combination of memory market commentary and speculative optimism about future foundry customers. Confirmation of any 14A commitments from major customers, along with progress on the Ohio fab talks with SK hynix, will likely be the next catalysts for the stock.