Intel stock rebounds amid restructuring plans
Intel is pushing aggressively into AI and high-performance computing markets.
As of March 26, 2025, Intel Corporation (NASDAQ: INTC) is trading at $40.62.
The stock has rebounded significantly from its 52-week low of $18.51, though it remains slightly below its yearly peak of $45.41. The recent uptrend reflects improving investor sentiment amid hopes for a successful strategic overhaul, yet the stock remains at a critical juncture from a technical perspective.
On the upside, immediate resistance is seen at $42. This level represents a recent high where momentum stalled in early March. A clean break above this could trigger further buying interest, pushing the stock toward the $45 mark, which coincides with its 52-week high. This level also marks a strong psychological and technical barrier. A sustained close above $45 would likely indicate the start of a new bullish phase.
INTC stock price dynamics (January 2025 - March 2025). Source: TradingView.
On the downside, initial support lies at $38, a level that previously acted as resistance in late February but has now flipped to support. A failure to hold above this level could see the stock pull back toward $35, which marks a more significant support zone. This area provided a base for the stock’s prior rally and aligns with the 50-day moving average, reinforcing its importance.
Strategic shifts and industry positioning
Intel’s recent performance is being closely watched due to major strategic initiatives. One of the most significant developments is the company’s reported plan to spin off its foundry arm, Intel Foundry Services (IFS), into a standalone business unit. This move is part of CEO Pat Gelsinger’s broader strategy to revitalize Intel’s competitiveness and improve operational agility.
The proposed restructuring is already generating interest from industry leaders. Companies such as Broadcom and TSMC have reportedly expressed interest in either partnering with or investing in the newly independent IFS entity. This validates the long-term potential of Intel’s foundry operations and could improve capital allocation across its core segments.
At the same time, Intel is pushing aggressively into AI and high-performance computing markets. The upcoming release of AI-optimized chips for data centers and enterprise applications positions the company to tap into one of the fastest-growing segments of the semiconductor industry. However, competition remains fierce, particularly from Nvidia and AMD, both of which have established strong footholds in AI-centric hardware.
Price scenarios
In the short term, Intel’s share price is likely to trade within a well-defined range between $38 and $45. The next few weeks will be critical as investors assess the progress and structure of the IFS spinoff, along with any updates on AI product rollouts.
In a bullish scenario, strong investor reception to the IFS spinoff, coupled with upbeat earnings guidance or key client wins in AI, could push the stock beyond $42 and toward the $45 resistance level. Conversely, in a bearish scenario, delays or negative sentiment around the restructuring could result in a pullback to $38 or lower.
Earlier this month, Intel shares surged 10% in after-hours trading after the company named Lip-Bu Tan, former CEO of Cadence Design Systems, as its new chief executive. Tan, a respected semiconductor industry veteran and former Intel board member, succeeds interim co-CEOs following Pat Gelsinger’s retirement in December.
