Intel (INTC) Stock Rockets 15% as Foundry Division Outmuscles TSMC in Q2 Surge

Silicon underdog bites back—hard. Intel's bleeding-edge 18A process just landed three unnamed 'tier-1' clients, sparking the biggest single-day rally since the dot-com era. Wall Street's scrambling to rewrite its 'obituary' projections.

Foundry wars heat up

The chip giant's $20B Arizona fab is finally humming with EUV machines. Early yield reports suggest they're hitting 80% on 3nm test wafers—just enough to make TSMC accountants reach for antacids.

Short squeeze or sustainable?

Analysts remain split. Bulls point to the Pentagon's recent 'secure enclave' contract. Bears whisper about that 32% gross margin—still 15 points below Taiwan's golden goose. One thing's certain: hedge funds just got a brutal reminder that tech obituaries make terrible short theses.

TLDR

• Intel stock jumped 6.4% on Tuesday following positive news from multiple sources
• Counterpoint Research report showed Intel holding 6.5% market share in chip foundry industry, ranking second behind TSMC
• Intel announced major marketing restructuring deal with Accenture using AI to cut costs from $856 million advertising spend
• Geopolitical factors including Israel-Iran ceasefire and potential Fed rate cuts boosted broader market
• Samsung reportedly shifting focus away from 1.4nm process, potentially benefiting Intel’s competitive position

Intel stock surged 6.4% on Tuesday as investors digested a combination of positive industry reports and strategic company moves. The semiconductor giant’s shares climbed to close the day higher as broader market conditions and company-specific developments aligned.

The rally began with the release of Counterpoint Research’s latest foundry industry report. Intel secured second place in the Foundry 2.0 category with a 6.5% market share during the first quarter of 2025. Taiwan Semiconductor Manufacturing maintained its leading position at 35.3% market share.

Intel’s foundry performance showed mixed signals compared to previous quarters. The company’s market share dropped from 6.8% in the first quarter of 2024. However, it improved from the 5.9% share recorded in the fourth quarter of 2024.

The Counterpoint report highlighted progress with Intel’s 18A manufacturing process. This technology represents a critical component of Intel’s strategy to compete with TSMC for third-party chip fabrication contracts. The success of this process depends heavily on achieving attractive chip yields for potential clients.

Market Competition Shifts

Samsung’s reported strategic pivot added another layer of Optimism for Intel investors. The South Korean chipmaker is allegedly shifting focus away from its 1.4nm process to improve yields from its 2nm technology. This development potentially removes competitive pressure from one of Intel’s key rivals in advanced manufacturing.

Intel also announced a major restructuring of its global marketing operations on Tuesday.

The company will outsource a large portion of these functions to Accenture, leveraging the consulting firm’s AI capabilities. This MOVE targets cost reduction and efficiency improvements across Intel’s marketing spend.

The company allocated $856 million to advertising in 2024, part of broader administrative expenses totaling $5.5 billion. Intel executives expect the Accenture partnership to reduce these figures through automation and digital transformation initiatives.

Under CEO Lip-Bu Tan’s leadership, Intel is prioritizing automation to restore profitability. The Accenture deal includes implementing AI tools for customer engagement, workflow automation, and market data analysis. The consulting firm will also help Intel adopt faster operational processes and tighten spending controls.

Broader Market Forces

Geopolitical developments provided additional tailwinds for Intel’s Tuesday performance. The announcement of a ceasefire between Israel and Iran lifted broader market sentiment. Investors had been monitoring this conflict as a potential catalyst for wider regional instability.

Federal Reserve Chair Jerome Powell’s comments about possible interest rate cuts added another positive factor. Powell indicated the Federal Open Market Committee could potentially reduce rates in July. This dovish stance typically benefits technology stocks like Intel.

The S&P 500 gained 1.2% while the Nasdaq Composite ROSE 1.5% on Tuesday. Intel’s outperformance reflected both company-specific catalysts and participation in the broader technology sector rally.

Affected Intel employees from the marketing restructuring will receive status updates by July 11. The timeline suggests Intel is moving quickly to implement the operational changes outlined in the Accenture partnership.

Analysts remain cautious about Intel’s longer-term prospects despite Tuesday’s rally. Price targets for the stock continue hovering around current trading levels, reflecting ongoing uncertainty about the company’s competitive position.

The Accenture partnership represents Intel’s broader embrace of AI technology not just in products but in operational efficiency. This approach reflects industry trends where artificial intelligence is replacing entire operational layers rather than simply enhancing existing work processes.