Melius predicts Intel, Apple, and AMD could close the gap on AI industry leaders in the second half of the year.

Intel’s stock saw a 4% increase on Monday following analysis from Melius Research suggesting that companies like Advanced Micro Devices (AMD), Apple, and Intel could potentially catch up to AI market leaders like Nvidia in the latter half of the year.

Analyst Ben Reitzes of Melius Research stated that this surge in stock prices for companies like AMD, Intel, Apple, and IBM could be a result of a ‘catch-up’ trade in the semiconductor, hardware, and software industries where expectations are lower.

Jordan Klein, an analyst at Mizuho Securities, noted that there was a significant amount of short-covering among chipmakers like Intel, potentially driving the recent increase in stock prices.

Despite the recent jump in Intel’s stock price, which saw an intraday gain of 6.1%, the stock is still down by 33% for the year. Long-term investors may remain cautious about buying Intel shares, with analyst Klein suggesting that a significant rally above $30 in the near future is unlikely.

According to Seeking Alpha’s quantitative rating system, Intel currently holds a ‘Hold’ rating, while the average rating from Seeking Alpha authors leans towards a ‘Buy’. Wall Street analysts, however, maintain a ‘Hold’ rating for Intel.

In conclusion, Intel’s stock saw a significant increase on Monday, fueled by speculation of a catch-up trade among semiconductor companies and short-covering activity in the industry. Despite the recent surge, long-term investors may remain hesitant to buy Intel shares due to ongoing challenges within the company’s business.

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