Intel's Ohio Gambit: SK Hynix Talks and a Wave of Analyst Upgrades Fuel a 203% Rally

Intel shares climb 7.8% to €95.00 on reported SK Hynix memory talks and higher Wall Street targets, extending a 203% rally this year.

Intel shares extended a blistering run on Thursday, climbing 7.8% to €95.00 as traders digested reports of a possible tie-up with South Korea's SK Hynix alongside a fresh round of bullish calls from Wall Street. The advance builds on a rally that has lifted the stock 203% since the start of the year, though the prior session's move was more modest — a 4.7% gain that left the shares at €88.12, roughly 4.8% above their 50-day moving average of €84.12.

A Memory Partnership Takes Shape — Cautiously

At the center of the excitement are early-stage discussions, first reported by Reuters, that could see SK Hynix produce memory chips on American soil for the first time. Two structures are on the table: SK Hynix could lease capacity within Intel's planned Ohio complex, or the two companies could form a joint venture that would include major cloud providers as partners. The aim is to serve surging U.S. demand for AI memory solutions such as HBM (High Bandwidth Memory) without relying on overseas supply lines.

SK Hynix has been quick to temper expectations, stressing that no plans have been finalized and that multiple options remain under review. Regulatory hurdles also loom: because high-bandwidth memory and advanced DRAM processes are classified as national core technologies under South Korea's Industrial Technology Protection Act, any offshore manufacturing would require government approval. Questions over ownership structure and eventual capacity in Ohio remain unresolved.

Ohio's Timeline Slips

The broader Ohio project itself is running behind schedule. Production at the two new fabs, originally slated to begin next year, is now expected to start in 2030 and 2031. Intel has committed to investing as much as $100 billion at the site over the long term — a figure that underscores both the scale of the bet and the patience it demands.

Operationally, Intel is taking steps to shore up margins in the meantime. The company plans to raise prices for PC CPUs by roughly 10% starting in early October. On the manufacturing front, progress with High-NA EUV equipment is described as promising, with more than one million wafers already processed — a signal that Intel is closing the technological gap with rivals. Mass production using the 18A process has also begun, and yields are steadily improving.

Analysts See More Room to Run

The developments have prompted analysts to revise their targets sharply higher. Tigress Financial's Ivan Feinseth lifted his price target to $145 from $118 while reaffirming a buy rating, pointing to a standout second quarter in which revenue jumped 25% to $16.1 billion — Intel's strongest growth in more than 15 years. Bank of America also reiterated its buy recommendation with a $145 target, citing expectations of a global memory chip shortage in 2027 that would make a foundry-memory alliance strategically valuable.

Northland upgraded the stock to "Outperform" with a $120 target. Some market observers go further, floating the possibility of a climb to $200 within two years — contingent on the upcoming 14A manufacturing technology winning over major customers such as Apple.

The CEO's Warning

Intel CEO Lip-Bu Tan offered a sobering counterpoint at an industry conference in Denver. Intel can currently satisfy only about half of demand for central processing units, he said, and he warned of a severe memory crunch in 2027 as AI infrastructure buildout strains supply chains. Memory component prices have already risen five- to sevenfold.

For the current third quarter, Intel projects revenue of between $15.8 billion and $16.8 billion. With the stock up 181% year-to-date as of Wednesday's close — and further gains since — investors are clearly betting that the company's turnaround will deliver.