Intel (NASDAQ: INTC) stock is soaring Tuesday. The semiconductor company's share price was up 6.4% as of 3:45 p.m. ET amid the backdrop of a 1.2% rise for the S&P 500 and a 1.5% rise for the Nasdaq Composite.
Intel's valuation is surging today following a recently released market share report on the semiconductor industry. The stock is also getting a boost from macroeconomic and geopolitical dynamics that are supporting bullish momentum for the broader market.
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Intel stock rises on foundry report
Counterpoint Research published a new report on the semiconductor fabrication industry, and it included some good news for Intel investors. While Taiwan Semiconductor Manufacturing maintained a 35.3% market share in Counterpoint's Foundry 2.0 category in this year's first quarter, Intel ranked in second place with a 6.5% market share. While Intel's performance declined from a market share of 6.8% in Q1 2024, it was up from 5.9% in Q4 2024.
More importantly, Counterpoint's update included some signs of favorable progress for Intel's 18A manufacturing process. Intel is aiming to challenge TSMC as a provider of chip fabrication services for third-party customers, and the near-term outlook on the front hinges heavily on whether chip yields from 18A wind up being attractive to potential clients.
Adding another bullish catalyst, Samsung is reportedly shifting focus away from its 1.4nm process in order to improve yields from its 2nm process technology. If that news is accurate, it suggests a setback for one of Intel's competitors.
Geopolitical and macroeconomic factors are also lifting chip stocks today
The announcement of a ceasefire between Israel and Iran is pushing the broader market higher today, and Intel is participating in the rally. The war between the two countries has been in focus as a risk factor that could lead to a broader conflict and a pronounced bearish turn for the market, but investors are seeing signs that things may now be on a path toward continued de-escalation.
Adding another bullish catalyst, Federal Reserve Chair Jerome Powell indicated today that it was possible that the central banking authority's Federal Open Market Committee (FOMC) could cut interest rates next month. While a July rate cut may or may not happen, the Fed seems to be adopting a more dovish stance -- and that's good news for Intel and other chip stocks.
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Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Intel and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.