Intel stock reaches heights not seen in nearly two years
Intel shares (Nasdaq: INTC) poked their head above $50 this week for the first time in nearly two years as investor faith in the chipmaker continued to recover.
The stock closed at $50.82 on Wednesday, putting it up 106% from a 2023 nadir, a $24.63 adjusted close on Feb. 27. The Nasdaq composite index gained 31% in that period.
Intel stock last closed above $50 on an adjusted basis — an important measure since the company this year slashed its dividend — on Jan. 19, 2022. Widespread economic uncertainty as the Fed began raising interest rates to battle inflation, a semiconductor-demand downturn and questions about Intel’s competitiveness then halved the value of the stock by the end of the year.
This year, amid a general market turnaround, has been a different story for Intel.
By spring, when it released first-quarter results, Intel was showing signs of having bottomed out. That trend continued in the second and third quarters. More recently, CEO Pat Gelsinger’s growth strategy appears to be gaining traction with new product releases and process technology advances. Intel has also gained traction with the idea that artificial intelligence could drive growth.
AI, of course, has been the star that every company wants to attach itself to this year. AI chip leader Nvidia shares are up nearly 240% in 2023. Intel’s performance might pale in comparison, but the company can boast that it’s beating Nvidia in December, up 14% compared to Nvidia’s 6%.
At its closing share price on Wednesday, Intel had a market cap of $214 billion. Track the stock here.
Although Intel is not headquartered in Arizona, the company is one of the largest corporate employers in the state with some 12,000 employees, and it is currently undergoing a $20 billion expansion at its Ocotillo campus in Chandler.