Intel stock surges 5%: Memory upgrade and Google AI deal fuel rally

Intel Corp INTC stock traded higher by more than 5% during Tuesday’s session as traders lean into a risk-on tape.

The chipmaker is advancing its AI infrastructure strategy while restructuring key parts of the business, including its Data Center and AI Group.

Intel Targets Memory Performance

Intel is working to improve memory bandwidth on its Xeon 6 platform as AI workloads become more data-intensive. The company plans to support 1DPC 8000 MT/s RDIMM functionality on select Intel Xeon 6700P SKUs, delivering a 25% memory-speed increase over current 6400 MT/s RDIMMs and 6% lower memory latency.

Intel says the move to 8000 MT/s RDIMM memory can provide up to 20% more total memory bandwidth, helping CPUs, AI accelerators and storage move data more efficiently. Production availability is targeted for the August-to-September 2026 timeframe.

Google Cloud Partnership Expands

Intel and Alphabet Inc’s GOOGL Google Cloud expanded their multi-year partnership to accelerate Intel’s AI-driven enterprise transformation.

Intel will deploy Gemini Enterprise across engineering, supply chain and corporate operations. The company will also use Google Cloud infrastructure to power AI agents, automate workflows and accelerate chip development through scalable high-performance computing.

The collaboration includes AI tools for coding, marketing and communications, building on the companies’ existing work to optimize next-generation AI infrastructure.

Data Center Layoffs Continue

Intel launched another round of layoffs affecting employees in its Data Center and AI Group as CEO Lip-Bu Tan continues a broader restructuring effort ahead of the company’s second-quarter earnings.

Intel has not disclosed how many employees will be affected. The company said the cuts are part of its effort to streamline operations and position the business for long-term growth, rather than a shift in product strategy.

The Data Center and AI Group oversees Intel’s server processors, custom AI chips and data center technologies. The unit generated $5.05 billion in first-quarter 2026 revenue, up 22% from a year earlier.

The cuts follow Intel’s plan to reduce its global workforce by about 15%. More than 5,000 U.S.-based employees have already been laid off, with most reductions taking place in California, Oregon, Arizona and Texas during 2025.

Technical Analysis

From a longer-term trend view, the stock is still in an uptrend: it’s trading 58.4% above its 200-day SMA ($64.49) and 16% above its 100-day SMA ($88.11). The bigger near-term issue is the pullback from the highs, with shares now 13.2% below the 20-day SMA ($117.65) and 12.6% below the 50-day SMA ($116.95), which keeps overhead supply in play.

The moving-average structure remains constructive on paper, with the 20-day SMA above the 50-day SMA and a golden cross (50-day SMA above the 200-day SMA) that formed in August 2025.

Earnings & Analyst Outlook

The countdown is on: Intel Corp is set to report earnings on July 23, 2026 (confirmed).

• EPS Estimate: 19 cents (Up from Loss of 10 cents YoY)
• Revenue Estimate: $14.40 Billion (Up from $12.86 Billion YoY)

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price forecast of $98.77. Recent analyst moves include:

• Morgan Stanley: Equal-Weight (Raises Forecast to $75.00) (July 20)
• Susquehanna: Neutral (Raises Forecast to $115.00) (July 16)
• Keybanc: Overweight (Raises Forecast to $155.00) (July 14)

Top ETF Exposure

• VanEck Semiconductor ETF SMH: 7.36% Weight
• Invesco AI and Next Gen Software ETF IGPT: 7.25% Weight
• Pacer Data and Digital Revolution ETF TRFK: 7.85% Weight

Significance: Because INTC carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action

INTC Stock Price Activity: Intel shares were up 5.17% at $102.08 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo: Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article Intel Stock Surges 5%: Memory Upgrade and Google AI Deal Fuel Rally originally appeared on Benzinga.com.