Intel Shares Rally After CoreWeave Boosts AI Demand Sentiment

Shares of Intel Corp. rose more than 9% on November 12, reaching $63.39, as part of a broader semiconductor rally. The surge followed strong third-quarter results from AI cloud provider CoreWeave, which reported $3.7 billion in revenue—more than double the previous year—and raised its full-year outlook. This performance helped alleviate investor concerns regarding AI infrastructure demand and potential regulatory headwinds following the Democratic Party's gain of control of Congress in the U.S. midterm elections.

The recovery follows a period of severe volatility for Intel. On October 30, the company experienced its steepest one-day drop since 1974, plunging 28.6% after issuing weak fourth-quarter guidance. Intel projected revenue between $15 billion and $16 billion and adjusted earnings of $0.25 per share, missing analyst expectations. The company attributed the weak forecast to a faltering PC market driven by high prices and component shortages, while also noting that a factory accident in Israel would reduce fourth-quarter revenue by approximately $300 million.

Despite these challenges, CEO Lip-Bu Tan signaled confidence by purchasing 150,000 shares through a family trust for approximately $9.7 million on November 2. While Intel reported solid third-quarter revenue of $16.51 billion and 78% growth in Data Center and AI revenue, CFO Dave Zinsner warned that the company may not achieve positive cash flow in 2027. Intel remains focused on its foundry business and server CPU market to drive a long-term turnaround.