Today’s Change
(7.67%) $7.75
Current Price
$108.80
Key Data Points
Market Cap
Day’s Range
$104.70 – $111.37
52wk Range
$28.73 – $142.35
Volume
148.2M
Avg Vol
109.1M
Gross Margin
39.05%
Intel (INTC +7.67%), the leading chip manufacturer, closed at $108.80, up 7.67%. Shares rose after news reports yesterday of a possible tie-up with SK Hynix (SKHY +4.64%). They continued to rise today, even though the South Korean firm issued a statement saying that nothing has been finalized.
Trading volume reached 147.2 million shares, coming in about 35% above its three-month average of 109.0 million shares.
How the markets moved today
The S&P 500 closed at 7,638, up 1.14%, while the Nasdaq Composite finished at 26,418, up 1.69%. Among semiconductors, Advanced Micro Devices closed at $545.09, up 6.36%, and Qualcomm closed at $188.71, up 2.09%, as chip-sector strength and memory-share momentum lifted the group.
What this means for investors
Chip stocks rallied today after a rough week in which interest rate hikes and tech leaders’ calls for a slowdown in artificial intelligence (AI) development weighed on the sector. Intel got an extra boost from a deal that may not even materialize: Even a whisper that SK Hynix might, possibly, maybe lease part of its Ohio complex or enter into a joint venture proved tantalizing to investors.
The difficulty with these types of speculative price jumps is that they often aren’t sustainable. SK Hynix saying it is “exploring various options” is a long way from signing a deal. More concrete news? Barclays upgraded the stock from “Underperform” to “Overweight.” Ultimately, Intel is well-placed to benefit from growing AI demand, but finding a client for its foundry business — whether or not that’s SK Hynix — would represent a significant win.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Qualcomm. The Motley Fool has a disclosure policy.
