Why Intel Stock Surged Today

Source The Motley Fool

After sell-offs yesterday, Intel (NASDAQ: INTC) stock rallied in Tuesday's trading. The semiconductor company's share price gained 2.8% amid a 2.5% gain for the S&P 500 and a 2.7% gain for the Nasdaq Composite. The stock had been up as much as 4.8% before giving up some of its gains.

Bloomberg reported today that U.S. Treasury Secretary Scott Bessent said at an investor conference this morning that the U.S.-China trade war could see significant de-escalation in the near term. The news helped power substantial gains for Intel despite two analysts lowering their price targets on the stock before the market opened.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Intel stock sees rebound thanks to trade hopes

Treasury Secretary Bessent reportedly said today that the U.S.'s trade war with China was unsustainable and indicated that there could be a deal, even though negotiations had not begun in earnest. The White House later confirmed that the Trump administration was "setting the stage" for a trade deal with China.

The seemingly conciliatory news helped power substantial gains for Intel and the broader market, regaining ground lost in sell-offs yesterday. But with conditions seeing big shifts daily lately, investors should understand that more big volatility could still be in the cards.

Bernstein and Barclays both lower price targets on Intel

In new coverage released this morning, Barclays lowered its one-year price target on Intel from $23 per share to $19 per share and reiterated an equal-weight rating on the stock. Analyst Tom O'Malley pointed to tariff headwinds and broader valuation pressures connected to dynamics with China as reasons for the move.

Bernstein also lowered its target on Intel, cutting its price forecast from $25 per share to $21 per share and maintaining a market-perform rating on the stock. The firm lowered its performance outlook for the year to earnings of $0.37 per share on sales of $52.4 billion -- down from its previous target for per-share earnings of $0.43 on sales of $53.1 billion.

As noted in Bernstein's coverage, Intel faces an uneven demand outlook on the chip-design side of the business this year. For better or worse, news about what strategy Intel will take with its loss-generating foundry business will likely also have a big impact on the stock this year.

Should you invest $1,000 in Intel right now?

Before you buy stock in Intel, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $593,970!*

Now, it’s worth noting Stock Advisor’s total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: Yet to be confirmed US-Iran MOU caps US Dollar's upsideHere is what you need to know on Friday, May 29:
Author  FXStreet
7 hours ago
Here is what you need to know on Friday, May 29:
placeholder
How Trumponomics Influenced Oil Price Volatility in the Iran War Understand how the Strait of Hormuz shock moved markets, and what CFD traders watched next.
Author  Rachel Weiss
13 hours ago
Understand how the Strait of Hormuz shock moved markets, and what CFD traders watched next.
placeholder
Finding The Best Japan Stocks to Buy? These are Top Japanese Companies to Watch Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
Author  Mitrade
14 hours ago
Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
placeholder
WTI falls to near $87.00 on potential US-Iran ceasefire extensionWest Texas Intermediate (WTI) oil price extends its losses for the third successive day, trading around $87.20 per barrel during the Asian hours on Friday.
Author  FXStreet
16 hours ago
West Texas Intermediate (WTI) oil price extends its losses for the third successive day, trading around $87.20 per barrel during the Asian hours on Friday.
placeholder
Trump’s ‘Copper Tariffs’ June Countdown. US Copper Imports Surge, Will Copper Prices Hit New Highs?On May 27, Bloomberg reported that copper trading activity has intensified as market expectations of potential copper tariffs under a Trump administration heat up, prompting traders to sh
Author  TradingKey
Yesterday 08: 08
On May 27, Bloomberg reported that copper trading activity has intensified as market expectations of potential copper tariffs under a Trump administration heat up, prompting traders to sh
goTop
quote