Why Intel Stock Jumped This Week
Key Points
Intel is rebounding this week.
Consumer use of AI agents may increase demand for computer chips.
Intel is still a leader in the semiconductor space.
Shares of Intel (NASDAQ: INTC) were rising this week, according to data from S&P Global Market Intelligence. The semiconductor maker is seeing rising enthusiasm due to the rapid proliferation of artificial intelligence (AI) agents that could require massive amounts of compute to run.
Intel stock climbed 14.3% this week and is now up over 250% in the past year. Here's why, and whether the stock might be a buy from here.
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Agentic usage and partnerships
The talk of the town over the last week has been the release of Meta Platforms' AI agent, Muse. Muse can perform legitimate tasks for users, such as booking flights, saving money by canceling subscriptions, or making restaurant reservations. It has shot up the mobile app stores, garnering millions of downloads in just a few weeks since launch.
For Intel, rising usage of AI agents could mean more usage from its computer chips in data centers, which is why the stock was rising this week. Intel has been struggling for years to compete with Taiwan Semiconductor Manufacturing, and the AI boom may just give it a bounce-back in demand, helping it regain a solid footing.
Image source: Getty Images.
Is Intel stock a buy?
Intel's revenue grew 25% year-over-year last quarter, and it now has partnerships with many players across the semiconductor supply chain, as well as backing from the U.S. government. The stock is not cheap today, but if you believe in the long-term growth of the AI infrastructure build-out, Intel stock will probably do fine over the next decade.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel, Meta Platforms, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.