Intel (Intel (INTC)) shares jumped about 5% on Monday, riding a wave of risk-on sentiment that lifted semiconductor and large-cap tech stocks. The Nasdaq gained 0.84%, and the S&P 500 added 0.32%, with technology leading all sectors. But Intel's move stood out — the stock gained nearly 5%, far outpacing the Technology Select Sector SPDR Fund (XLK), which rose just 0.89%.
Investors are likely positioning ahead of Intel's second-quarter earnings report, scheduled for Thursday, July 23. Wall Street expects earnings of 19 cents per share, a sharp turnaround from a loss of 10 cents per share a year earlier. Revenue is forecast at $14.4 billion, up from $12.86 billion in the same quarter last year.
The rally came even as overall market breadth remained weak — the advance-decline ratio sat at 0.8, and the Dow Jones Industrial Average slipped 0.13%. The Russell 2000 eked out a 0.11% gain. Materials was the weakest sector, down 0.51%.
Intel Expands Google Cloud Partnership
Separately, Intel and Alphabet's (Alphabet (GOOGL)) Google Cloud announced an expanded multi-year partnership aimed at accelerating Intel's AI-driven enterprise transformation. Intel will deploy Gemini Enterprise across its engineering, supply chain, and corporate operations, while using Google Cloud infrastructure to power AI agents, automate workflows, and speed up chip development through scalable high-performance computing.
The collaboration also includes AI tools for coding, marketing, and communications, building on the companies' existing work to optimize next-generation AI infrastructure. It's a clear signal that Intel is leaning into AI as a core part of its turnaround strategy.
Technical Picture Remains Mixed
Despite Monday's pop, Intel's technical picture is still a bit messy. The stock trades 16.4% below its 20-day simple moving average of $117.72 and 15.8% below its 50-day average of $116.97. That's a reminder that the recent selloff has been sharp.
But zoom out, and the longer-term trend looks healthier. Intel is 11.7% above its 100-day moving average of $88.12 and a whopping 52.6% above its 200-day average of $64.50. The so-called "golden cross" — where the 50-day moving average remains above the 200-day moving average — is still intact, suggesting the underlying trend is positive despite recent weakness.
Momentum indicators are mixed. The MACD sits below its signal line, indicating that bullish momentum has slowed. Technical traders are watching the $98.50 level as an important support area — Monday's close at $99.72 puts the stock just above that threshold.
Earnings and Analyst Outlook
Intel reports quarterly results on Thursday, July 23. The consensus estimate calls for earnings of 19 cents per share on revenue of $14.4 billion. That would be a significant improvement from the year-ago quarter, when Intel reported a loss of 10 cents per share on revenue of $12.86 billion.
The stock carries a consensus Hold rating, with an average price target of $96.70 — slightly below Monday's close. But recent analyst actions have been more upbeat. Susquehanna raised its price target to $115 on July 16 while maintaining a Neutral rating. KeyBanc raised its target to $155 on July 14 and reiterated an Overweight rating. UBS also raised its target to $121 on July 13, keeping a Neutral rating.
So the analyst community is split — some see value, others are waiting for more evidence of a turnaround. Monday's rally suggests the market is leaning optimistic heading into earnings.
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