What Happened?
Shares of computer processor maker Intel (NASDAQ: INTC) jumped 4.6% in the afternoon session after reports revealed that the company planned to raise server CPU prices amid shortages, coupled with a massive spending forecast from cloud giant Amazon.
According to a Reuters report, Intel and a key rival intended to increase server CPU prices by as much as 10% in the Chinese market due to unexpected supply constraints. The positive sentiment was amplified after Amazon announced a $200 billion spending plan for 2026, which boosted the entire AI-related semiconductor sector. This news was particularly relevant for Intel, which had previously reached an agreement to produce custom Xeon 6 server chips for Amazon.
Adding to the bullish news, an analyst at Seaport Research Partners upgraded Intel's stock from Neutral to Buy, citing confidence in the company's future performance and potential market share recovery driven by new products.
Is now the time to buy Intel? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Intel’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 10.2% on the news that reports surfaced that chip giants Nvidia and Apple were considering using Intel's foundry services for future chip production.
According to a report from DigiTimes, Nvidia planned to partner with Intel on its next-generation "Feynman" GPU chip, while Apple was also in discussions for an entry-level processor. This news represented a major potential win for Intel's strategy to manufacture chips for other companies, a market largely controlled by Taiwan Semiconductor Manufacturing Company (TSMC). The possible shift by major players like Nvidia and Apple signaled growing confidence in Intel's manufacturing abilities.
Intel is up 28.6% since the beginning of the year, and at $50.63 per share, it is trading close to its 52-week high of $54.32 from January 2026. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $855.85.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
