Intel Stock Leads S&P 500 Rally Amid Semiconductor Sector Optimism

Intel shares surged 8% on Tuesday, outpacing the S&P 500 as semiconductor stocks rallied broadly. The uptick reflects market Optimism about potential easing of U.S.-China trade restrictions, with bilateral talks underway in London. Sector-wide momentum propelled the PHLX Semiconductor Index to a 2% gain for the second consecutive session.

Despite the rally, Intel faces significant headwinds. CFO David Zinsner acknowledged negligible initial production volumes for the company''s next-generation 18A and 14A manufacturing technologies. The foundry business isn''t expected to break even before 2027, compounding challenges for a stock that''s lost 30% of its value over the past year.

Technical indicators suggest strong buying conviction, with the stock closing above both 50-day and 200-day moving averages on its highest volume since April. Traders are watching key resistance levels at $23, $26, and $33, with $19 serving as critical support.