Nvidia’s $5B Intel Deal Sparks 22% Stock Surge, Fueling AI Chip Optimism

Intel shares surged 22% to $30 after securing a strategic partnership with Nvidia, marking its highest level since July 2024. The $5 billion collaboration to co-develop data center and PC chips injects credibility into Intel's turnaround efforts following last year's restructuring and leadership changes.

Wedbush analysts called the deal a "game changer" that positions Intel at the forefront of AI semiconductor development. The momentum builds on Intel's 24% YTD gain prior to the announcement, with total 2024 returns now exceeding 50%.

Market sentiment appears to be shifting for the historically undervalued stock, which remains 50% below its 2021 peak. All 11 Visible Alpha-tracked analysts maintained "hold" ratings before Thursday's rally, suggesting potential for reevaluation.