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Investing.com -- Intel shares are rallying more than 7% on Thursday, extending a rally that has the stock on pace for its best one-week performance in 25 years.
Wall Street is taking notice, with Mizuho (NYSE:MFG) analysts suggesting that Intel (NASDAQ:INTC) could go from a "consensus short" to a "Golden Boy Turnaround Long Idea for 2025."
Over the past five days, Intel has climbed 15% while the Philadelphia Semiconductor Index (SOX) has remained flat, a stark contrast to historical trends.
"When was the last time INTC was handily outperforming the SOX? Was Jimmy Carter in the White House!" Mizuho analysts wrote. Year to date, Intel is up 12% while Nvidia (NASDAQ:NVDA) is down 2%, further defying expectations.
Speculation is building that the U.S. government may push for a joint venture between Intel and Taiwan Semiconductor Manufacturing (TSMC) to address Intel’s longstanding production challenges at advanced chip nodes.
“Trump and the US are going to force TSM’s hands into helping INTC turn around their production issues,” Mizuho suggested, outlining a scenario where TSMC gains an equity stake in Intel’s foundry business in exchange for operational support.
According to Mizuho, Intel’s packaging technology is already strong, but to sustain its rally, it must prove itself as a leading-edge semiconductor manufacturer and secure external foundry customers.
While skepticism remains high, analysts believe that if the U.S. government fully backs Intel’s turnaround, investors may have no choice but to add exposure to the stock.
“If INTC gets to a 20%+ YTD return sooner vs later, and Trump, Vance, and the White House make a lot more noise about saving INTC... many will have to add some INTC,” Mizuho stated.