Following sell-offs the previous day, Intel’s stock experienced a rally during Tuesday’s trading session. The semiconductor company’s share price rose by 2.8%, aligning with a 2.5% gain for the S&P 500 and a 2.7% gain for the Nasdaq Composite. At one point, the stock had increased by as much as 4.8% before surrendering some of those gains.
A report by Bloomberg indicated that U.S. Treasury Secretary Scott Bessent had spoken at an investor conference, suggesting that the U.S.-China trade war could see significant de-escalation shortly. This announcement contributed to notable gains for Intel despite two analysts lowering their price targets for the stock prior to the market opening.
Intel stock rebounded due to optimism surrounding trade negotiations. Treasury Secretary Bessent reportedly stated that the trade conflict between the U.S. and China was unsustainable and hinted at the possibility of a deal, despite the lack of substantial negotiations. The White House later confirmed that preparations were underway for a trade deal with China. This conciliatory news contributed to significant gains for Intel and the broader market, recovering ground lost in the previous day’s sell-offs. Nonetheless, given the rapidly changing conditions, investors should remain aware of the potential for continued market volatility.
In analyst reports released that morning, Barclays adjusted its one-year price target on Intel from $23 per share to $19 per share, reiterating an equal-weight rating. Analyst Tom O’Malley cited tariff challenges and broader valuation pressures related to dynamics with China as reasons for the adjustment. Bernstein also revised its target on Intel, reducing its price forecast from $25 per share to $21 per share while maintaining a market-perform rating. The firm downgraded its performance outlook for the year to earnings of $0.37 per share on sales of $52.4 billion, down from its previous target of $0.43 per share earnings on sales of $53.1 billion.
Bernstein’s analysis noted that Intel faces an uneven demand outlook in its chip-design business this year. The strategy Intel chooses to pursue regarding its loss-generating foundry business will likely have a significant impact on the stock in the coming year.
