Intel Jumps 51% as Google, Musk Ties Fuel Rally

Intel shares climbed 51% over eight trading days and were nearly 25% higher for the week as traders moved into chip stocks and the broader market rose. The Nasdaq Composite gained about 4.7% for the week, the S&P 500 3.6% and the Dow 3%. Intel showed a relative strength index of about 75, a level that typically indicates heavy buying.

The rally was driven in part by two partnership updates. Google announced it will use multiple generations of Intel central processing units in its artificial intelligence data centers, expanding an existing supplier relationship. Lip-Bu Tan posted on LinkedIn that Intel is “helping design, manufacture, and package custom chips for SpaceX, xAI, and Tesla at Terafab,” referring to the chip factory project in Texas.

Investors are also watching Intel’s agreement to acquire Apollo Global Management’s 49% stake in the Fab 34 joint venture in Ireland for $14.2 billion. Intel will pay with cash and a $6.5 billion bridge loan that it expects to refinance later. Once the transaction closes, Intel will have full control of manufacturing at the Ireland site.

Analysts point to Intel’s current server CPU mix as a factor for near-term sales. TD Cowen projects that in the fourth quarter of 2025 roughly 20% of Intel’s x86 server CPU sales will come from its third-generation performance chips, with older tenth- and seventh-generation products still leading unit sales.

Intel has forecast some improvement from its Diamond Rapids chips in the second half of 2025, with possible progress in the second quarter. Coral Rapids is expected in the second half of 2026 or later. Those future products could change Intel’s competitive position in x86 server CPUs but are expected to face pricing pressure compared with present parts.

Institutional and retail trading activity has been mixed. Guardian Investment Management reduced its stake in Intel by 34.8% in the fourth quarter, selling 16,300 shares and ending the period with 30,550 shares valued at $1.127 million. Smaller managers opened or increased stakes: Corundum Trust Company and Raleigh Capital Management each started positions of about $29,000, Provenance Wealth Advisors increased its holding to 946 shares, and several advisory firms added positions in the low tens of thousands of dollars. Institutions hold about 64.53% of Intel’s shares.

Market flows showed funds rotating into chip stocks while software-focused funds fell. Technical indicators and the concentration of recent headlines have been factors cited by traders as they weigh whether the rally is short term or will persist. Market participants say they will monitor upcoming earnings reports, customer engagements and product milestones for Diamond Rapids and Coral Rapids for evidence of revenue and manufacturing progress.