Intel Stock Soars 30% Despite $13B Foundry Loss - Market Defies Logic

Intel's stock just ripped higher by 30%—because nothing says 'bullish' like a $13 billion foundry loss that would make any sane investor run for the hills.

Wall Street's Latest Delusion

Traders piled into INTC like it's 1999, apparently deciding that massive operational losses are the new growth metric. The semiconductor giant's foundry division bled $13 billion while the stock market decided to party like it's hitting all-time highs.

Because when traditional finance gets this irrational, it makes crypto volatility look downright predictable—at least blockchain losses come with transparent ledgers instead of creative accounting.

Maybe they're betting on AI saving everything, or perhaps it's just another case of institutional investors chasing momentum over fundamentals. Either way, it's a reminder that sometimes the traditional markets make meme coins look like stable investments.

Intel Stock Price, INTC Surge and Nvidia Intel $13B Foundry Risks

Nvidia Deal Actually Sends INTC Stock Soaring

The Nvidia Intel partnership gives Nvidia a 4% stake in Intel while creating joint AI infrastructure products along with other initiatives. Under the agreement, Intel will build custom CPUs for Nvidia’s AI servers, and Nvidia will integrate AI technology into Intel’s PC semiconductors.

Wedbush analyst Dan Ives had this to say:

“This is a game changer deal for Intel as it now brings them front and center into the AI game.”

Jensen Huang stated:

“This historic collaboration tightly couples NVIDIA’s AI and accelerated computing stack with Intel’s CPUs and the vast x86 ecosystem — a fusion of two world-class platforms.”

The $13B Foundry Crisis Behind INTC Stock Gains

Despite the INTC stock surge, Intel’s foundry business remains quite problematic at the time of writing. Intel Foundry Services losses were ballooned to $13 billion in 2024 from $7 billion in 2023, which contributed to INTC stock’s 60% decline last year.

CFRA analyst Angelo Zino told Yahoo Finance:

“This is a business that will continue to bleed cash at least through 2027.”

The Nvidia deal notably excludes Intel’s foundry operations, which actually surprised some analysts. Moor Insights & Strategy analyst Anshel Sag said:

“In fact, I was expecting that Nvidia was going to announce some sort of contract manufacturing deal with Intel, with the US government’s involvement.”

What Does the INTC Stock Rally Means Going Forward

While the Nvidia partnership boosts Intel stock credibility, the fundamental foundry challenges persist right now. The US government’s 10% stake in Intel underscores the strategic importance of domestic chip manufacturing, but Intel stock performance will ultimately depend on resolving the $13B foundry losses that are plaguing the company.