The Intel stock 2025 story just took a dramatic turn. Shares of Intel (NASDAQ:INTC) skyrocketed on news that Nvidia (NASDAQ:NVDA) is investing $5 billion into the legacy chipmaker. This landmark deal, combined with federal backing, has ignited one of the biggest single-day rallies in Intel’s history. But the critical question remains: should investors chase INTC stock at these levels?
Nvidia’s $5 Billion Vote of Confidence
Nvidia’s announcement stunned Wall Street. The company will acquire Intel shares at $23.28 each, a sizable premium before the rally. The deal positions Nvidia’s AI and accelerated computing platforms alongside Intel’s CPU and x86 ecosystem, creating a strategic partnership that could reshape the semiconductor landscape.
Intel shares exploded 28% in premarket trading, hovering near $32. If the move holds, it would mark Intel’s best daily performance in decades. Options traders, who had been expecting only a modest 2.7% swing this week, were blindsided as the stock blew through the gamma-heavy $25 strike level.
U.S. Government Support Strengthens Intel
This is not the first lifeline Intel has received in 2025. The U.S. government previously secured a 10% equity stake in the company, worth $8.9 billion. That move underscored Washington’s determination to shore up domestic semiconductor production and reduce reliance on Asia amid escalating geopolitical risks.
With backing from both Nvidia and the federal government, Intel is better positioned to execute its turnaround plan. The company recently sold a 51% stake in its Altera business to Silver Lake for $3.3 billion. This restructuring effort allowed management to trim its 2025 operating expense forecast to $16.8 billion, while reaffirming its 2026 goal of $16 billion.
Intel Stock 2025: A Year of Transformation
Under CEO Lip-Bu Tan, Intel is racing to reclaim relevance in an industry it once dominated. Despite years of setbacks in mobile and AI chips, investors are warming up to Intel’s restructuring efforts. Year-to-date, INTC stock has gained roughly 24%, reflecting renewed optimism.
Still, the stock’s surge above $30 means it is already trading well beyond Wall Street’s consensus targets. Analysts’ Street-high forecast sits at $28, suggesting the current rally may have run too far, too fast.
Global Semiconductor Market Outlook
The semiconductor market is expected to expand from $627 billion in 2024 to more than $1 trillion by 2030, driven by artificial intelligence, data centers, and automotive applications. This growth creates a massive opportunity for Intel if it can execute.
But challenges remain steep. Taiwan Semiconductor (NYSE:TSM) controls around 67% of the foundry market, giving it a commanding lead in advanced chip manufacturing. Intel’s turnaround also faces external risks, including rising U.S.-China tensions and ongoing Chinese antitrust scrutiny of American semiconductor companies.
Wall Street’s Take on Intel Stock 2025
Despite Intel’s rally and restructuring progress, analysts are cautious. The consensus rating on INTC stock remains a “Hold,” unchanged for months. Wall Street wants to see proof that Intel can deliver sustainable gains in AI and foundry services before turning more bullish.
That skepticism may be justified. Intel’s recent surge puts its stock well above consensus price targets, raising the risk of a near-term pullback if execution falters or if investor enthusiasm cools.
Should You Buy Intel Stock in 2025?
The Intel stock 2025 rally has been fueled by Nvidia’s massive endorsement and government support. These moves give Intel breathing room to restructure and compete in the fast-growing AI market.
However, with shares trading well above analyst targets and competition from Taiwan Semiconductor and other players still intense, Intel may face turbulence ahead. For investors, INTC stock today looks like a high-risk, high-reward bet — one that could pay off big if the turnaround succeeds, but equally one that could stumble if Intel fails to execute.
Featured Image: Pexels @ Pok Rie
Author Stephanie Bédard-Châteauneuf 
