Intel jumps after Computex: CEOs seek more CPU supply

Intel shares rose 3% to $111.36 on Wednesday, ending a five-day losing streak. The stock had gained 214% between March 30 and May 11, then fell 13% over the prior five trading days and remained about 22% below its record closing high of $129.44 from May 11. Broader indexes moved lower on the day: the Dow fell 424 points (0.8%), the S&P 500 declined 0.7% and the Nasdaq lost 1% amid rising oil prices and higher Treasury yields tied to the U.S.-Iran conflict.

The gain followed comments by Chief Executive Lip-Bu Tan during a keynote at Computex in Taipei. Tan told attendees that other chief executives had called in the previous four weeks requesting additional CPU supply. Intel also introduced its Xeon 6 Plus server processor at the conference.

Intel described the Xeon 6 Plus as built on its 18A process node, offering up to 288 E-cores and aimed at high-density inference and agentic AI workloads in data centers. The company said the chip targets workloads that coordinate multiple steps and tasks within AI applications.

Investors weighed signs of renewed demand for server CPUs even as much AI infrastructure spending has focused on graphics processing units. Nvidia unveiled a new AI chip for personal computers earlier in the week, a development that had contributed to recent weakness in Intel’s PC processor business. Advanced Micro Devices shares rose about 1.5% on Wednesday.

Morningstar senior equity analyst Brian Colello noted that the rise of agentic AI systems — designed to plan multi-step tasks and coordinate workflows — has increased the importance of CPUs within AI infrastructure. He added that high-performance GPUs remain critical for training and inference, while CPUs handle a broader set of computing tasks and system coordination.

Colello cautioned that markets may be pricing a best-case scenario for Intel. He pointed to ongoing competitive and execution risks and said Intel does not yet have a large AI GPU business capable of directly challenging Nvidia in core accelerator markets.

Analysts and investors are watching whether stronger server CPU demand will sustain the rally that has made Intel a closely watched turnaround. Shares have climbed more than 220% over the past six months, and future performance will depend on execution of product roadmaps and competition across CPUs and AI accelerators.