Intel Corp. (NASDAQ:INTC) stock jumped nearly 8% Wednesday as strong demand signals for artificial intelligence infrastructure and a broader technology rally lifted semiconductor stocks.
The Nasdaq gained 2.63%, while the S&P 500 rose 1.24%. Technology led all 11 sectors, climbing 3.89%.
AI Demand Fuels Chip Rally
Chip stocks gained after South Korean semiconductor shares rallied and CoreWeave Inc. (NASDAQ:CRWV) reported better-than-expected quarterly results. The AI infrastructure company also raised its full-year revenue forecast.
Meanwhile, NVIDIA Corp. (NASDAQ:NVDA) rebounded, adding to the sector’s momentum.
Intel outperformed the broader technology sector, gaining 7.84% compared with the sector’s 3.89% advance.
However, the rally remained concentrated. Only five of the 11 market sectors advanced, highlighting investors’ preference for technology stocks.
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Technical Analysis: Intel Faces Key Resistance
Despite Wednesday’s rally, Intel remains below its major moving averages.
The stock trades 17.5% below its 20-day simple moving average (SMA) of $77.01. It also sits 34% below its 50-day SMA of $96.21 and 27.2% below its 200-day SMA of $87.29.
Moreover, the moving average convergence divergence (MACD) indicator remains below its signal line. This suggests momentum is still weak despite the rebound.
Traders are watching resistance at $77.01, while $62.69 marks a near-term support level.
Analyst Outlook
Intel carries a consensus Hold rating and an average analyst price forecast of $96.33.
On Oct. 30, Wedbush and UBS lowered their price forecasts to $75 and $80, respectively. Freedom Broker also downgraded Intel to Hold and reduced its price forecast to $90.
INTC Price Action
INTC Stock Price Activity: Intel shares were up 7.82% at $62.68 at the time of publication on Wednesday, according to Benzinga Pro data.
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