Intel shares gained over 33% in the past month as investors warmed to CPUs for AI data centers. Second-quarter data center and AI revenue climbed 59% year over year to $6.3 billion, while supply constraints reportedly left Intel meeting only about half of customer requests.
Intel expects double-digit industry unit growth as server-CPU demand improves. The rally’s staying power will depend on its ability to expand supply, defend market share and protect margins: AMD is gaining share, while higher memory, wafer and substrate costs could pressure margins. Passing those costs on could lead some customers to delay purchases or consider rivals. Intel is also building its foundry business; Google selected it to make Tensor Processing Units, and SK Hynix was reportedly in discussions about memory-chip production.
Insider Monkey’s database counted 138 hedge funds holding Intel at the end of the second quarter, up from 112 in the first. SoftBank ended the quarter with a stake valued at about $12.14 billion, while Coatue opened a position worth about $1.68 billion. Shares sold short rose to about 158.81 million on Sept. 15 from 135.1 million on Aug. 14, representing about 3.01% of Intel shares.
