Intel (INTC) Stock: Why the Chip Giant Surged 12% on Monday

TLDR

• Intel stock rose 12.1% to $121.78 on Monday, with trading volume 60% above average
• Meta’s Muse AI agent rollout boosted expectations for server CPU demand, benefiting Intel’s data center business
• Falling oil prices and Treasury yields dropping below 5% improved broader market sentiment for tech stocks
• Melius Research issued a Buy rating with a $165 price target, citing Intel Foundry Services potential
• Analyst consensus remains “Hold” with an average price target of $108.49, below Monday’s trading price

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Intel stock jumped 12.1% on Monday, hitting an intraday high of $124.73 before settling at $121.78. The previous close was $108.60. Volume came in at around 188 million, roughly 60% above the average session level.

Intel Corp., INTC

The catalyst was Meta’s rollout of its Muse AI agent. The move raised expectations that AI inference workloads will require more server CPU capacity, which markets read as a direct tailwind for Intel’s data center business.

At the same time, macro conditions helped. US crude fell about 3% to $96.56 a barrel, while Brent dropped over 3% to $100.72. The 10-year Treasury yield slipped below 5%, easing pressure on growth stocks.

AMD also caught a bid, rising around 8% and hitting a 52-week high of $609.50, bringing its valuation close to the $1 trillion mark.

Intel has now gained more than 19% over the past five trading sessions, while AMD has advanced more than 20% in the same stretch.

Wall Street Weighs In

Melius Research issued a Buy rating last week with a $165 price target, implying around 51% upside from Friday’s close. Analyst Ben Reitzes also laid out a path to $200 over two years, driven largely by Intel Foundry Services and the 14A manufacturing node. That thesis leans on high-volume production accelerating by 2028, with support from customers including Apple and Tesla.

Tigress Financial also raised its Intel price target to $145 from $118, keeping a Buy rating and calling it an “accelerating AI-driven turnaround.” The firm pointed to stronger Xeon demand and improving execution on Intel’s 18A process.

Despite the bullish calls, the broader analyst consensus sits at “Hold” with an average price target of $108.49, which is now below where the stock is trading.

Supply Constraints and the SK Hynix Factor

One detail that stood out to investors: Intel can reportedly fulfill only about half of current customer demand. That kind of supply constraint, while a short-term headache, signals strong underlying orders and potential revenue upside as capacity expands.

Adding to the foundry story, Reuters reported last week that SK Hynix is in discussions about bringing memory-chip production to Intel’s long-delayed Ohio manufacturing site. A deal would give Intel’s foundry business a meaningful customer and a boost to its manufacturing ambitions.

CEO Lip-Bu Tan purchased around 105,000 Intel shares in August at $95 per share, totaling roughly $10 million. That insider buy added some confidence heading into this week’s move.

On the financials, Intel’s last quarterly report showed earnings of $0.42 per share, beating estimates of $0.21. Revenue came in at $16.13 billion, up 25.2% year over year, against expectations of $14.43 billion.

Bank of America analyst Vivek Arya forecasts the semiconductor industry’s total addressable market will reach $3.2 trillion by 2030, up from an estimated $1.7 trillion this year, and named Intel among the potential beneficiaries.

Intel has set its Q3 2026 EPS guidance at $0.38, with analysts expecting full-year earnings of $1.04 per share.