For much of 2026, the chip trade has been the only show on Wall Street. The iShares Semiconductor ETF (SOXX) is still up 77% year to date through May 11, Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) has more than doubled, and Intel (NASDAQ:INTC) has been the comeback story of the cycle.
Shares of Intel (NASDAQ:INTC | INTC Price Prediction) are down 10% in Tuesday trading, changing hands near $116 after closing at $129.44 on Monday.
Shares of major semiconductor companies retreated sharply on Tuesday as investors locked in gains following a powerful rally driven by optimism around artificial intelligence infrastructure and next-generation chip demand. Intel (INTC) fell about 10% in trading after the stock more than doubled over the past month through Monday's close.
Mizuho raised its price target on Intel (NASDAQ:INTC | INTC Price Prediction) stock to $124 from $100 on May 12, keeping a Neutral rating as the firm cited agentic AI continuing to drive server demand.
Intel (INTC) has rebounded sharply, driven by AI demand and strategic manufacturing moves, with a Buy rating maintained despite a rapid rally. INTC's transformation into a leading fab, securing major deals and benefiting from government support, positions it to capitalize on persistent AI supply bottlenecks. Current earnings estimates may be conservative; INTC could double EPS in the next year or two if AI momentum persists.
Profit-taking and computer-shipment data could be contributing to the Tuesday declines.
Intel stock's (NASDAQ: INTC) comeback has been one of the year's biggest market surprises. The stock was trading around $129 on Tuesday, after briefly touching an intraday high of $133.48, and it had already closed at a record $124.92 on Friday.
Traders are betting on some big moves for Intel's stock that could extend its record-setting rally.
Shares of Intel (INTC) rose on Monday amid growing optimism that the chipmaker could secure a significant new customer for its semiconductor packaging technology, strengthening investor confidence in the company's foundry ambitions. Intel stock climbed 3% to $128.76 in afternoon trading, extending a remarkable rally that has seen the shares surge more than 225% this year.
The company is reportedly working with South Korea's SK Hynix on new chip-packaging technology.
Zacks.com users have recently been watching Intel (INTC) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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