- Intel stock rose 5.68% pre-market to $114.77 and opened up 7.23% after reports that SK Hynix is in exploratory talks to produce memory chips at Intel's delayed Ohio foundry facility.
- Intel and AUO Optronics announced a strategic advanced packaging partnership for Micro LEDs, targeting co-packaged optics and high-density computing integration for AI workloads using Intel's glass substrate patents and through-glass via technology.
- Intel's Q2 revenue rebounded to $16.1B, up 25% y/y, with Data Center and AI up 59% and Foundry up 31%, and the company reported Q2 EPS of $0.42 on $16.13 billion revenue.
- Sell-side upgrades cited strengthening server CPU demand, solid 18A node execution, high-NA EUV deployment, and prospective CPU price hikes, while Barclays moved to overweight.
- Risks remain: Intel trades near 70x forward earnings, capex above $20 billion strains free cash flow, third-party customer revenue is only $293 million of quarterly foundry revenue, and SK Hynix clarified no formal plans have been finalized.
Quotes
“Intel (NASDAQ:INTC) stock rose 5.68% pre-market, trading at $114.77, following reports that SK Hynix is in exploratory talks to produce memory chips at Intel's delayed Ohio foundry facility”
“Q2 revenue rebounded to $16.1B (+25% y/y), with Data Center and AI up 59% and Foundry up 31%, supporting operational improvement.”
“The collaboration centers on advanced packaging technology for Micro LEDs, specifically targeting co-packaged optics and high-density computing integration for artificial intelligence workloads.”
“SK Hynix explicitly clarified that no formal plans or arrangements have been finalized, exposing the stock to sharp pullbacks if these speculative deals fall through.”