INTC Stock Jumps on AI Chip Breakthrough—Should Investors Buy Intel Now?

Intel stock (INTC) extended its 2025 rally to a fresh 52-week high of $42.51 during Tuesday’s session, capping a 67 percent jump over the past year and more than doubling in the last six months as Wall Street responds to multiple growth catalysts. The latest leg higher follows two pivotal headlines this week: 1. $208 million Malaysia expansion Malaysia’s prime minister confirmed that Intel will pour an additional 860 million ringgit—about $208 million—into its Penang assembly and test hub, adding capacity to the $7 billion advanced-packaging campus announced in 2021. The fresh outlay strengthens Intel’s Southeast-Asian supply-chain footprint at a time when chipmakers are diversifying beyond China. 2. Apple foundry speculation Shares briefly spiked 10 percent last Friday after TF International Securities analyst Ming-Chi Kuo said industry checks point to Intel winning a contract to fab Apple’s lowest-end M-series processor on its 18A node as early as 2027. Although the stock pared those gains on Monday, the chatter revived optimism that Intel Foundry Services can attract marquee customers and reclaim advanced-node leadership from TSMC. Why the momentum matters • Manufacturing comeback: CEO Pat Gelsinger’s “five nodes in four years” roadmap reaches its climax next year with 18A production. Securing Apple—even for lower-volume chips—would validate the node’s competitiveness and open doors to higher-margin iPhone or Mac silicon down the line. • Geographic hedging: The Malaysia investment, plus ongoing fabs in Arizona, Ohio and Germany, gives Intel a diversified, CHIPS-Act-leveraged network to serve U.S. and Asian customers amid escalating U.S.–China tech rivalry. • AI tailwinds: Intel’s Gaudi accelerators and the pending Lunar Lake PC platform position the company to participate in data-center and edge AI spend that Gartner forecasts will exceed $135 billion in 2026. Valuation snapshot At $42-plus, INTC trades near 25× FactSet’s 2026 EPS consensus—rich versus its five-year average but a discount to peers Nvidia and AMD—reflecting both execution risk and a potential payoff from foundry and AI bets. Bulls argue that multiple expansion can continue if Intel secures anchor customers and regains desktop/laptop share; bears point to a lofty 936 P/E on trailing earnings and lingering margin pressure as the firm ramps new fabs. What’s next Investors will watch Intel’s Jan. 23 earnings for 18A yield updates, 2026 capex guidance and any color on foundry pipeline conversions. Meanwhile, confirmation of government incentives for the company’s Ohio “Silicon Heartland” megafab could offer another catalyst early in the new year. Bottom line With fresh overseas investment, mounting Apple deal buzz and a breakout share price, Intel stock remains a focal point in the semiconductor sector’s late-2025 narrative. Traders chasing momentum should track volume around the $43 resistance zone, while long-term holders weigh execution milestones against a valuation that now prices in a meaningful manufacturing turnaround.