Intel Surges 9% as SK Hynix Ohio Fab Talks and CEO Memory Warning Ignite Chip Rally

Intel shares jumped roughly 9% on Thursday, trading above $110, after reports emerged that SK Hynix is in discussions to build memory chips inside Intel's Ohio manufacturing complex. The potential deal, which has not been signed and carries no timeline, would bring a major external customer into Intel Foundry, which currently derives only about 5% of its segment revenue from outside clients. Analysts caution that material external foundry commitments are not expected before 2028, and one analyst noted the deal echoes an earlier TSMC joint-venture rumor from 2025 that never closed.

Adding fuel to the rally, Intel CEO Lip-Bu Tan said memory chip prices have surged more than 500% and that businesses "cannot get enough memory," signaling no letup in demand. The comments lifted Micron Technology about 5-6% and SK Hynix about 5% in sympathy. One analyst argued Intel could nearly double to $200 within two years, citing potential partnerships with Apple, Tesla, and AI chip customers, while a separate Seeking Alpha analysis called the stock too expensive despite Intel delivering its fastest revenue growth in 15 years, with Q2 revenue up 25% year over year and significant margin expansion in Data Center and AI.

The broader chip sector rallied even as the Federal Reserve raised its target rate by 25 basis points to a range of 3.75%-4.00% and signaled at least one additional hike this year, with 16 of 18 policymakers projecting further tightening. Investor fears about an AI spending slowdown and rate-hike pressure on growth stocks appeared to ease. On the competitive front, Huawei launched 11 new AI-related chips aimed at challenging Nvidia, Intel, and AMD, adding a longer-term overhang to the sector. Intel has also enacted three PC CPU price hikes over the past year, a move analysts say prioritizes margin over volume at a time when PC total addressable market guidance for 2026 is down by double digits, a dynamic that Seeking Alpha argued hands AMD a meaningful share gain opportunity.