Why did Intel stock soar

Intel shares soared due to analysts' bullish coverage. Also, excitement surrounding the next processor, which has the potential to strengthen the company's position in the artificial intelligence (AI) field and the game hardware market, boosted the stock prices of major chip companies.

Intel shares rose on Monday thanks to bullish coverage by Merius Research analyst Ben Reitzes (Ben Reitzes). In response to the explosive rise in ratings from Nvidia and other AI leaders, Mr. Leitzes went searching for top artificial intelligence plays for the second half of this year. And he thinks Inter has what it takes to bring victory.

In particular, Mr. Leitzes sees that Microsoft's new AI “recall” will be a tailwind of potential demand for Intel. The Recall function allows users to easily snap back to the initial point in their computer's data history, and analysts believe that it will be a meaningful detonator for devices made using Lunar Lake, which is Intel's central processing unit (CPU) line for PCs and mobiles. There is a possibility that Lunar Lake will debut this year or early 2025.

Over the weekend, there were reports that Intel is preparing to announce a new graphics processing unit (GPU) manufactured by Taiwan Semiconductor Manufacturing (TSMC). BattleMage processors for PCs are said to use TSMC's 4 nanometer (4 nm) node platform, and they are expected to go on sale in 2025. The upcoming processor targets the game market rather than the data center market, which is the center of the AI revolution, but investors seem bullish on Intel's efforts to expand in the GPU field.