Despite a 5-Day Hot Streak, Intel's Stock is Still Below Last Month's Highs

Intel Corp.’s stock continued its strong upward momentum on Tuesday, extending its winning streak to five consecutive trading sessions. Over this period, shares have surged by 30%, marking a significant recovery for the semiconductor giant.

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A major catalyst behind this recent rally has been the appointment of Lip-Bu Tan as Intel’s new chief executive officer, announced after the market closed last Wednesday. His leadership selection has generated renewed optimism among investors, who see his experience as a potential turning point for the company.

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Despite this recent upswing, Intel’s stock remains below the peak it reached last month during a short-lived rally. At that time, investor sentiment was buoyed by expectations of a major corporate restructuring. Reports emerged indicating that Intel’s interim chairman, Frank Yeary, was exploring strategic options, including potential discussions with the Trump administration regarding the company’s future. Additionally, speculation circulated that Broadcom Inc. might consider making a bid for Intel’s design business, further fueling excitement in the market.

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On February 18, Intel shares closed at a 2025 high of $27.30, following a remarkable one-day rally of 16%. That surge was the stock’s largest single-session gain since March 2020. Investors have since remained enthusiastic about Intel’s future under Tan’s leadership, with the stock climbing approximately 1% on Tuesday as confidence in the new CEO’s vision continues to build.

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Looking at its year-to-date performance, Intel has emerged as one of the standout performers in the S&P 500. As of Tuesday, the stock has gained nearly 31% in 2025, significantly outpacing broader market trends. The rally has added more than $22 billion to Intel’s overall market capitalization over the past five trading sessions. This represents a sharp rebound from last year, when Intel’s valuation had dropped to a low of approximately $81 billion. Now, the company’s market cap stands at around $112 billion, reflecting growing investor confidence.

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However, despite this resurgence, Intel still faces significant uncertainties regarding its long-term direction. A key question on investors’ minds is whether Tan will move forward with a full-scale breakup of the company—an idea that has been circulating for some time. A potential split would involve separating Intel’s chip manufacturing business, known as Intel Foundry, from its core product design and semiconductor business.

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Under former CEO Pat Gelsinger, Intel Foundry was already positioned as a distinct subsidiary, with its own financial reporting structure and independent business model. This restructuring was intended to give the foundry division more flexibility in competing with established contract manufacturers like Taiwan Semiconductor Manufacturing Co. (TSMC). Some market participants have speculated that the foundry unit could eventually be spun off entirely, possibly as part of a joint venture with TSMC.

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Following the appointment of Tan as Intel’s new CEO, Wall Street analysts have been closely evaluating the company’s next strategic moves. One of the more notable perspectives comes from Bernstein Research analyst Stacy Rasgon, who weighed in on what Tan’s leadership could mean for Intel’s structure.

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In a research note released after the CEO announcement, Rasgon suggested that rather than immediately pushing for a full separation of Intel Foundry, Tan might take a more measured approach. He speculated that the company could explore a hybrid model—maintaining ownership of the foundry business but seeking external partners to provide funding and support. This approach would allow Intel to retain a key role in semiconductor manufacturing while sharing some of the financial burden associated with expanding its foundry operations.

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At the same time, Rasgon cautioned that investors should not expect sweeping structural changes in the immediate future. Given that Tan is still new to the role, significant decisions regarding Intel’s long-term strategy will likely take time to materialize.

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As the company moves forward, much remains uncertain about how Tan will navigate Intel’s challenges and opportunities. The semiconductor industry is evolving rapidly, with fierce competition from established players like TSMC, Samsung, and Nvidia. At the same time, Intel is working to reclaim its position as a leader in advanced chip manufacturing, a goal that will require substantial investment and innovation.

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Another factor shaping Intel’s future is the broader geopolitical landscape. The semiconductor industry has become a focal point of global trade policies, particularly as the U.S. government seeks to bolster domestic chip production. Intel’s strategic decisions, including potential partnerships or government collaborations, could have significant implications for its ability to compete on a global scale.

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For now, investors appear optimistic that Tan’s leadership will bring stability and renewed growth to the company. However, whether Intel will undergo a fundamental transformation—such as a full corporate split—remains to be seen. As Tan settles into his role, market participants will be closely watching for any signals about his long-term vision for Intel’s future.

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