Intel Corp. (Intel (INTC)) shares slipped about 2% in Wednesday's premarket session, but don't read too much into it. After a quarter that saw the stock more than triple, a little profit-taking was almost inevitable.
Nasdaq futures were down 0.54% and S&P 500 futures slipped 0.31%, setting a cautious tone for tech stocks. Intel, which had been riding high near its 52-week peak, was an easy target for traders locking in gains.
The stock has dramatically outperformed the broader market over the past year, and when sentiment shifts risk-off, high-flyers tend to get clipped first. With shares trading well above their major moving averages, some selling makes sense. But the bigger picture? It's still remarkably bullish.
The AI Infrastructure Boom Lifted All Boats
While Nvidia (NVDA) gets most of the AI headlines, the second quarter belonged to the companies building the physical backbone of artificial intelligence. Intel, Advanced Micro Devices (AMD), and Micron Technology (MU) saw their valuations more than triple, collectively adding roughly $2 trillion in market cap. They now rank as the 10th, 11th, and 12th most valuable tech companies in the U.S.
Intel alone gained 216% during the quarter, adding about $480 billion to its market value. That's not a typo.
Barclays analyst Anshul Gupta told CNBC that investors rotated out of AI hyperscalers and into the companies supplying the hardware needed to build AI infrastructure. The shift fueled sharp gains across semiconductor stocks as investors looked beyond AI chip leaders to companies positioned to benefit from rising data center investment.
Analysts described the move as a potential "changing of the guard in AI," with investors favoring companies that complement Nvidia's ecosystem rather than compete directly with it. The broader rally also lifted shares of Marvell Technology (MRVL), Arm Holdings (ARM), and the VanEck Semiconductor ETF.
Cramer: Intel Is My Favorite Tech Winner
CNBC's Jim Cramer highlighted Intel as one of the standout technology performers of the second quarter, crediting CEO Lip-Bu Tan with transforming the company's outlook. Cramer called Intel his favorite stock among the quarter's biggest technology winners.
He said investors are rewarding companies that produce technology in short supply while large technology customers continue spending aggressively to support AI expansion. Cramer grouped Intel with Sandisk, Micron, Marvell, and AMD as key suppliers benefiting from broad demand across the semiconductor industry.
He identified three major growth drivers for Intel: its leadership in CPUs that power AI agents, its higher-margin chip packaging business, and its expanding foundry operations. Cramer also said Intel could eventually help ease the industry's memory shortage and described the company as "a national treasure."
The Technical Picture Remains Bullish
Despite the premarket dip, Intel's longer-term trend is still pointing up. The stock is trading about 13% above its 20-day simple moving average of $121.79 and roughly 132% above its 200-day simple moving average of $59.34. The 20-day average remains above the 50-day average, and the 50-day is above the 200-day — a classic bullish alignment that often supports buy-the-dip activity.
Momentum indicators also look constructive. The MACD is above its signal line, and the histogram remains positive, suggesting upward momentum continues even as the stock consolidates.
Traders are watching resistance near $141.50. A sustained move above that level could open the door to a test of the 52-week high of $142.35.
Earnings Are the Next Big Catalyst
Intel is scheduled to report second-quarter earnings on July 23. Analysts expect earnings of 19 cents per share, compared with a loss of 10 cents a year earlier. Revenue is projected to rise to $14.40 billion from $12.86 billion in the prior-year period.
Wall Street currently has a consensus Hold rating on the stock with an average price forecast of $88.63. But recent analyst actions suggest some firms see more upside. Cantor Fitzgerald raised its price forecast to $150 while maintaining a Neutral rating on June 29. Goldman Sachs initiated coverage with a Neutral rating and a $150 price forecast on June 25. Bank of America Securities raised its price forecast to $160 while reiterating a Buy rating on June 23.
ETF Exposure Means More Than Just Stock Traders
Intel remains a major holding in several exchange-traded funds, including the iShares Semiconductor ETF (SOXX), the iShares MSCI USA Value Factor ETF (VLUE), and the Pacer Data and Digital Revolution ETF (TRFK). That means ETF flows can influence trading activity, adding another layer of demand.
As of premarket Wednesday, Intel shares were down 1.57% at $137.44. But after a quarter like that, a small pullback is just noise. The real story is whether Intel can sustain its momentum through earnings and beyond.
