Intel Shares Rally 214% Since March; Shorts Lose $12B

Intel shares have climbed 214% since March 2023, increasing the company’s market capitalization by more than $440 billion. Short sellers recorded roughly $12 billion in mark-to-market losses over a recent six-week period as investors responded to demand for AI infrastructure and Intel’s expanding foundry operations.

The stock rose 25% in a single week, its best weekly gain since January 2000, and has been the top-performing S&P 500 member since early April. Market interest has focused on Intel’s role in AI hardware, its growing contract manufacturing business, a U.S. government equity stake, and a $5 billion investment from NVIDIA intended to boost capacity and collaboration.

Short interest remains near its 52-week high, indicating that a significant share of traders continue to take short positions. Market data show substantial mark-to-market losses for short sellers during the recent rally, while the level of short interest suggests many have maintained their positions rather than closing them.

Among 53 analysts covering Intel, 17 carry a Buy rating and three carry a Sell rating. The consensus price target stands at about $85, which is roughly 34% below current trading levels.

Market participants said they will watch whether short interest declines and whether Intel reports measurable foundry revenue growth in upcoming quarterly results. Observers are also tracking whether AI-related demand that has buoyed several chipmakers remains broad-based or becomes more selective.

The stock’s strong gains stand in contrast to analyst sentiment inside the Philadelphia Semiconductor Index, where Intel is listed among less-favored names based on coverage. Investors and analysts continue to monitor the company’s execution of its foundry expansion and broader spending patterns for AI infrastructure.