Chipmaker Intel’s Momentum Jumps As Investors Look Past TSMC Legal Drama Amid Rate Cut Bets
Haifa,,Israel,-,November,1,,2022:,Intel,Research,And,Development
Intel Corp. (NASDAQ:INTC) is witnessing a notable strengthening in market sentiment, with its Benzinga Edge’s Stock Rankings‘ momentum score climbing from 88.53 to 90.51 week-over-week.
Check out INTC’s stock price here.
Intel Jumps In Top Decline Of Momentum Gains
This shift pushes the chipmaker into the top tier of relative strength, signaling that investors are prioritizing macroeconomic tailwinds over a brewing corporate espionage issue involving its foundry rival, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM).
It maintains a strong price trend in the medium and long terms, but a weak trend in the short term. Its growth ranking, however, remains weak. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
See Also: Nvidia Partner Super Micro Computer Sees Weakening Momentum As Margin Pressures, Revenue Shortfall Weigh On Stock
Rate Cuts Act As A Catalyst For Technical Breakout
The primary catalyst for this technical breakout is growing optimism surrounding Federal Reserve policy. Following a forecast from Goldman Sachs and JP Morgan predicting a December interest rate cut, Intel shares have surged alongside the broader technology sector.
The potential for lower rates is uniquely bullish for Intel’s capital-intensive IDM 2.0 strategy.
Unlike its fabless competitors, Intel is borrowing heavily to finance massive factory expansions in Arizona and Ohio; lower rates would directly reduce the company’s weighted average cost of capital and improve the net present value of these long-term investments.
Intel Stands By Hiring Former TSMC Executive
This momentum is building despite significant legal headwinds. Taiwan prosecutors recently raided the home of Wei-Jen Lo, a former TSMC vice president who joined Intel in October, seizing computers and storage devices.
TSMC alleges a “high probability” that Lo leaked trade secrets regarding advanced 5nm and 3nm manufacturing processes to his new employer.
Intel has firmly rejected the accusations, standing by its hire and characterizing the executive movement as a “healthy” industry practice.
INTC Outperforms Market In 2025
While Intel shares have risen 82.05% year-to-date, the Nasdaq 100 index has returned 20.32% in the same period. Over the year, INCT has gained 53.06%.
On Wednesday, the stock rose 2.74% to $36.81 apiece. It was trading 1.25% higher in premarket on Friday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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