Intel (INTC) Stock Surges on Apple, Nvidia Partnerships

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Intel (INTC) stock is surging following a Bloomberg report that Apple is considering an investment in Intel as part of an effort to transform the chipmaker. This comes on the heels of its massive 34% rally following the announcement of Nvidia’s $5 billion partnership, forming a devastating one-two punch that has altered Intel’s direction and pushed the stock to new 52-week highs.

Key Drivers of the INTC Stock Move

Nvidia’s $5 Billion Bet: Nvidia (NVDA) made a strategic investment at $23.28 per share to co-develop AI infrastructure and PC products with Intel
Apple Investment Discussions: Apple (AAPL) is considering an investment in Intel as a part of the chipmaker’s turnaround plans, which is another big tech partnership after the Nvidia deal
Unusual Options Surge: More than $15 million of call option premium with significant November $30 and $35 strike call buying indicates institutional interest in Intel

The combination of potential Apple and confirmed Nvidia partnerships is a game-changer for INTC, which has struggled with declining market share and execution challenges. These deals could provide the capital, technology partnerships, and customer validation needed to compete effectively in AI and advanced computing markets.

intc chart with sidekick and news plotted on it

INTC Unusual Options

Massive options activity continued with traders purchasing over $15 million in call premiums. The November $30 calls attracted $1.1 million in premium, while $35 calls saw $178K. Heavy activity in 17 October $32 calls ($345K premium) suggests expectations for sustained momentum through earnings season. Some hedging appeared in February $25 puts ($211K premium).

INTC Seasonality

According to records since January 2020, INTC tends to do well in September (67% positive months, 2.8% average return) and very well in November (100% positive months, 9.9% average return). October is a challenging month, with only 40% of months being positive and an average return of -3.6% in 5 samples.

INTC Relative Performance

INTC has rallied to the 98th percentile of S&P 500 relative performance since the partnership announcements, well above the 84th percentile on September 17. This is the stock’s best relative performance in months, indicating strong outperformance compared to the broader market.

Analyst Focus

Analyst sentiment remains divided despite partnership momentum. Benchmark upgraded INTC to Buy with a $43 target, citing its transformational potential. Yet, Citigroup downgraded its rating to Sell but also raised its target price from $24 to $29. UBS kept a Neutral rating but raised its target from $25 to $35, while Barclays remained at Equal Weight with a target increase from $19 to $25.