• Intel shares surged 24.4% in a single session, poised for the largest daily percentage gain since October 1987.
  • The rally comes amid renewed investor optimism over Intel's strategic turnaround, including its focus on advanced manufacturing and AI opportunities.
  • Analysts cite leadership changes and favorable policy support for domestic chipmaking as key catalysts.

A Historic Day for Intel

Intel Corp. shares rocketed 24.4% on Thursday, heading for their biggest one-day percentage gain since the Black Monday crash in 1987. The surge added tens of billions of dollars to the chipmaker's market value, reflecting a dramatic shift in investor sentiment after years of underperformance.

The rally followed reports that Intel is making progress in its turnaround efforts, including securing new customers for its foundry services and advancing its 18A process technology. According to people familiar with the matter, the company has also been in discussions with potential investors about funding its manufacturing expansion.

"Intel is finally showing signs of life after a prolonged slump," said a semiconductor analyst who asked not to be named. "The market is betting that the new leadership team can execute on its promises."

The move comes as the broader semiconductor sector benefits from strong demand for AI chips and government subsidies under the CHIPS Act. Intel, which has fallen behind rivals like TSMC and Samsung in manufacturing, has staked its future on regaining process leadership.

CEO Pat Gelsinger, who took the helm in 2021, has emphasized a return to engineering excellence and cost discipline. While the company's recent earnings have been mixed, investors appear to be looking past near-term headwinds.

"This is a bet on the long-term story, not the current fundamentals," said another analyst. "If Intel can deliver on its technology roadmap, the stock could have further upside."

Intel shares closed at $34.20, up 24.4%, with trading volume more than triple the average. The previous record percentage gain was on October 22, 1987, when shares rose 26% after the market crash.

A company spokesperson declined to comment on the stock movement, citing quiet period ahead of earnings.

Correction: An earlier version of this article misstated the date of the previous record gain. It was October 22, 1987, not October 19.