Intel stock soars to 4-year high on AI optimism ahead of earnings

Shares of Intel Corp. (INTC) surged over 9% on Wednesday, January 21, hitting their highest level since January 2022.

With this, INTC stock has positioned itself among the top three gainers in the S&P 500.

The surge will not stop here. Recent upgrades from firms like HSBC and Seaport Research argue that the evolution of AI, from simple chatbots to complex, autonomous “agent” will drive massive demand for Intel’s general-purpose server CPUs.

Although it is good news for the company, the soaring stock price sets a high bar for the earnings report due after the bell on Thursday, January 22.

Experts warn that underlying challenges can block Intel’s way to meet the demands.

The consensus forecast estimates adjusted earnings of 8 cents per share on revenue of $13.4 billion.

Investors will be eyeing any official announcement of a major external customer for Intel’s fledgling foundry business, which would authenticate its costly manufacturing turnaround.

The post-earnings reaction will determine if the recent surge is the start of a sustained comeback or a premature celebration.