Intel’s stock received a boost on Wednesday after Northland Capital Markets upgraded the chipmaker, arguing that its process technology is finally ‘catching up’ to industry leaders. Analyst Gus Richard raised his rating on Intel to ‘outperform’, saying the company’s long-delayed 18A node is now on track and could restore its competitive edge.
Shares of Intel rose 3.2% in pre-market trading to $23.45, adding roughly £4bn to its market capitalisation. The upgrade contrasts with the broader caution that has weighed on semiconductor stocks this year, with the Philadelphia Semiconductor Index down nearly 8% in 2025.
Intel has struggled for years to execute its manufacturing roadmap, falling behind Taiwan’s TSMC and South Korea’s Samsung in the race to produce smaller, more efficient chips. The company’s foundry business, a key pillar of CEO Pat Gelsinger’s turnaround plan, has yet to win major external customers. Northland’s upgrade suggests that may be about to change.
“We see Intel’s process technology as reaching parity with competitors by late 2026,” Richard wrote in a note to clients. “The market has been too pessimistic about Intel’s ability to execute.” The analyst also pointed to potential government funding from the CHIPS Act as a tailwind for Intel’s US fabrication plants.
For UK investors, the news is a reminder of the volatility in global tech stocks. Intel remains a significant holding in many passive funds and pension portfolios. A sustained recovery would provide a lift to those holdings, though the company still faces stiff competition and high capital expenditure demands. Source: Northland Capital Markets