Intel stock rose by 9.5% on Tuesday following reports of a planned 10% price increase for PC processors in early October. Investors interpreted this move as a strategy to prioritize profit margins over sales volume, especially as global PC shipments are projected to decline to approximately 250 million units by 2027.
The US government, which acquired a 9.9% stake in Intel in August 2025 for $8.9 billion, has seen the paper value of its investment grow by roughly $36 billion. The government purchased 433.3 million shares at a price of $20.47 per share. At a recent valuation of about $105 per share, the total holding is worth approximately $45.5 billion.
Northland Securities upgraded Intel stock to Outperform with a price target of $120, citing progress in the company's turnaround and server processor shortages. Additionally, Intel announced that it has processed over one million silicon wafers using its High-NA extreme ultraviolet lithography machines, marking a significant milestone in its foundry operations.
CEO Lip-Bu Tan has been actively reducing low-margin product lines since late 2025 to improve financial performance. While Intel has not officially confirmed the specific timing or the range of products affected by the potential price hike, the impact on computer manufacturers will likely be reflected in the third-quarter financial results expected in late October.
