Intel shares rose 2.5% yesterday to $48.29 after a sharp 6% drop the prior session, driven by news of a roughly $100 million investment into SambaNova and an earnings beat that topped estimates. Analysts remain split on whether the gains signal real progress amid ongoing foundry challenges.
Shares traded as high as $49.55 with about 106.7 million changing hands, which was 22% below average volume (Ed. note: lower volume suggests the move lacked broad conviction). The company reported adjusted earnings of $0.15 per share versus $0.08 expected and revenue of $13.7 billion versus $13.4 billion expected, though revenue fell 4.2% year over year.
CFO David Zinsner bought 5,882 shares at about $42.50 after the drop and said “Once we get them, we’re gonna need to start really spending capital on the 14A front, and that’s how you’ll know.” The company also noted progress on a new ZAM prototype under the Saimemory project and continued work on AI hardware.
Foundry issues remain acute, with $12 billion in losses from 2021 to 2023 and current yields around 55 to 65 percent versus the 80 to 90 percent industry standard. Executives warned of “acute internal supply constraints” that will limit near-term capacity.
Wall Street maintains a consensus rating of Reduce with an average target near $45.76, though opinions vary widely. Citic Securities raised its target to $60.30, while Harlan Sur at J.P. Morgan set a $35 target, reflecting the uncertainty around execution and AI competitiveness.
