Intel Corporation (INTC), the semiconductor giant, is powering to a new 52-week high at $43.47 after an early wave of bullish options demand and renewed optimism around U.S. chip policy.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Options Traders Pile In
Intel saw heavy demand for call options even though there is no major news from the company. Almost 250,000 calls traded in the first hour of the session. That equals the stock’s full 20-day average for an entire day.
As of 10:30 a.m. ET, the put to call ratio had dropped below 0.25, its lowest level since August 14. On that August day, Intel also surged after reports that the U.S. government was thinking about taking an equity stake in the company, which later happened. Today’s action looks similar, with traders betting on more strength.
U.S. Support for Chipmaking Lifts Up Market Sentiment
Market sentiment also got a lift from news that the Trump administration will invest 150 million dollars in xLight, a young company trying to challenge ASML Holding (ASML) in the production of extreme ultraviolet machines, which are needed to make advanced chips.
The move signals that Washington is still serious about backing U.S. chipmaking. It also adds a small boost to Intel’s story because xLight’s executive chairman is former Intel CEO Pat Gelsinger.
While this link may not change Intel’s numbers, it does help support the idea that the U.S. wants a stronger homegrown chip supply chain.
What Comes Next for Intel Stock
Intel’s move earlier in the day was driven more by trader bets than by new company news. The heavy call buying showed that many expected the stock to keep rising.
But the momentum has cooled slightly. The stock is now lower in after-hours trading, and the big question is whether today’s burst of interest was a short spike rather than the start of a steady trend.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on three Buys, 25 Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 93.46% rally in its share price over the past year, the average INTC price target of $36.07 per share implies 17.02% downside risk.
