Intel shares jump 7.7% on SK Hynix speculation and Barclays upgrade
The chipmaker’s stock surged on reports of potential talks with the South Korean firm, while broader tech indices recovered from a week of rate and AI-related jitters.
Intel shares climbed 7.67 per cent to close at $108.80 on 17 September, driven by speculation regarding a potential partnership with SK Hynix and a favourable rating change from Barclays. The move provided a significant lift to the semiconductor sector, which had struggled in the preceding days due to interest rate hikes and growing concerns over the pace of artificial intelligence development.
The rally was fuelled by reports that SK Hynix may be negotiating to lease part of Intel’s Ohio complex or form a joint venture. Although the South Korean firm issued a statement clarifying that nothing had been finalised and that it was merely "exploring various options," investors remained enthusiastic. Trading volume reached 147.2 million shares, a figure approximately 35 per cent higher than the three-month average of 109.0 million shares.
Adding to the momentum, Barclays upgraded Intel from "Underperform" to "Overweight." The analyst firm’s move provided a more concrete catalyst for the price increase, complementing the speculative interest in the foundry business. For Intel, securing a client for its manufacturing arm would represent a significant strategic win, regardless of whether SK Hynix ultimately signs on.
The broader market mirrored this recovery, with the S&P 500 closing at 7,638, up 1.14 per cent, and the Nasdaq Composite finishing at 26,418, up 1.69 per cent. Chip stocks led the charge, with Advanced Micro Devices closing at $545.09, up 6.36 per cent, and Qualcomm rising 2.09 per cent to $188.71.
This rebound follows a difficult week for the sector, where market participants had weighed the impact of rising interest rates against the sustainability of AI spending. The sharp increase in trading volume suggests that investors are positioning themselves for potential growth in memory and foundry services, despite the inherent risks of speculative price movements.
While the SK Hynix talks remain in the early stages, the combination of institutional support and sector-wide strength has restored confidence in Intel’s ability to capitalise on the current AI boom. The market’s reaction highlights the continued sensitivity of chipmakers to both macroeconomic signals and corporate partnership news.
