Intel shares rise over 3% as chip sector rebounds after sharp selloff
Intel stock gained more than 3% in pre-market trading, leading a recovery among semiconductor companies following a steep decline after the chipmaker issued a weaker-than-expected fourth-quarter outlook.
Intel Corp. (INTC) shares climbed more than 3% in pre-market trading on Tuesday, sparking a broader rebound in semiconductor stocks after a two-day decline triggered by the company’s fourth-quarter guidance. The rally also lifted peers such as Advanced Micro Devices Inc. (AMD), NVIDIA Corp. (NVDA) and Micron Technology Inc. (MU). Technology shares were up about 1.6% while the S&P 500 added roughly 0.5%, according to market data.
The recovery follows a 28.58% drop on Friday that erased over $146 billion from Intel’s market value after the firm forecast adjusted earnings of $0.25 per share and revenue of $15-$16 billion for the quarter, both below consensus estimates. Intel had previously reported third-quarter earnings of $0.52 per share on revenue of $16.51 billion, but warned that soft PC demand and higher memory prices could persist into early 2027.
Analysts are divided on the outlook. Bank of America Securities analyst Vivek Arya downgraded Intel to Neutral, noting the company’s exposure to a weaker PC market and the need for substantial capital spending before seeing returns. KeyBanc Capital Markets analyst John Vinh kept an Overweight rating but trimmed his price target, citing a recent fab incident in Israel that created a margin headwind while emphasizing long-term opportunities in foundry, advanced packaging and server CPUs. Moor Insights & Strategy analyst Patrick Moorhead said the longer-term foundry thesis remains intact and expects manufacturing economics to improve by 2027.
Technical indicators show the stock in oversold territory, with a relative strength index of 25 and prices trading well below short-term moving averages, suggesting potential for a short-term bounce. Intel’s weightings in major semiconductor ETFs mean that fund flows can have a noticeable impact on its share price.
The selloff also affected Asian markets, with South Korea’s Kospi opening lower before institutional buying limited losses. Brokerage forecasts for memory makers such as Samsung Electronics and SK Hynix remain positive.
Current consensus ratings for Intel are Hold, with average price targets ranging from $96 to $99. Recent analyst actions include Wedbush maintaining a Neutral rating with a $75 target, UBS holding Neutral with an $80 target, and Freedom Broker downgrading to Hold with a $90 target.
Attention now turns to AMD’s upcoming third-quarter results, expected to show revenue of about $13.1 billion and adjusted earnings of $1.95 per share.