Intel Corp. (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. (CRWV) reported better-than-expected quarterly results. The AI infrastructure company also raised its full-year revenue forecast.

Meanwhile, NVIDIA Corp. (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.

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 market data.