Intel stock eyes historic 9-day rally, surges 56%

Intel was poised for a ninth consecutive day of upward movement on Monday, rising approximately 56% during this period and marking its most extended rally in nearly 50 years.

The last instance of a winning streak lasting nine days happened in September 2023, whereas a lengthier 13-day stretch took place in May 2005.

Numerous significant deals and announcements by the US chipmaker have been instrumental in this trend, including collaborations with Google and Elon Musk's Terafab initiative.

Recently, Intel disclosed it is extending its collaboration with Google. Google plans to employ Intel's latest Xeon 6 processors for handling artificial intelligence training and processing tasks, per the announcement.

Additionally, Intel revealed its participation in Elon Musk's Terafab project the past week.

Recently, Musk announced plans for Terafab, a state-of-the-art AI chip facility in Austin, Texas. 

The facility aims to develop and produce custom chips tailored for SpaceX, xAI, and Tesla, as stated by Musk.

On Tuesday, Intel shared an image of CEO Lip-Bu Tan and Musk together.

"Our capability to design, produce, and package top-tier performance chips on a large scale will bolster Terafab's objective of yielding 1 TW/year of computational power, fueling future innovations in AI and robotics," stated the company.

The chipmaker also reacquired the remaining shares of its Ireland chip factory earlier this month. 

This $14.2 billion deal highlights renewed financial strength compared to when it offloaded the 49% stake in 2024.

Leading the CPU sector, Intel and Advanced Micro Devices remain at the forefront. Last month, Dion Harris, heading AI infrastructure at Nvidia, informed CNBC that CPUs are "becoming the limiting factor" for AI and dynamic workflow solutions.

Diverging from AMD and Nvidia, which rely on outsourcing for silicon production, Intel both designs and manufactures its own chips.

In August, the US government obtained a 10% equity share in Intel, recognizing it as the sole domestic producer of cutting-edge chips. 

A month following this, Nvidia revealed a $5 billion investment alongside technology collaboration with Intel.

Nvidia's CEO, Jensen Huang, described the collaboration as "an outstanding investment."