Intel Corp. (INTC) is having quite the moment. The chipmaker's momentum score just jumped from 88.53 to 90.51 over the past week, and investors seem perfectly comfortable ignoring a brewing legal drama with Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) in favor of something far more exciting: the prospect of cheaper money.
Rate Cuts Steal the Spotlight
Here's why this matters. Following predictions from Goldman Sachs and JP Morgan about a potential December interest rate cut from the Federal Reserve, Intel shares have surged alongside the broader technology sector. But Intel stands to benefit more than most.
Unlike fabless competitors that outsource manufacturing, Intel is executing its capital-intensive IDM 2.0 strategy, borrowing heavily to finance massive factory expansions in Arizona and Ohio. Lower interest rates would directly reduce the company's weighted average cost of capital and improve the net present value of these long-term investments. When you're building billion-dollar fabs, every basis point matters.
The stock maintains a strong price trend in medium and long terms, though the short-term trend remains weak. Its growth ranking also sits in weak territory for now.
The TSMC Drama Investors Are Ignoring
Meanwhile, there's that whole corporate espionage situation. Taiwan prosecutors recently raided the home of Wei-Jen Lo, a former TSMC vice president who joined Intel in October. They seized computers and storage devices amid allegations that Lo may have leaked trade secrets involving advanced 5nm and 3nm manufacturing processes to his new employer.
TSMC claims there's a "high probability" of trade secret theft. Intel, for its part, has firmly rejected the accusations, standing by its hire and calling executive movement between competitors a "healthy" industry practice. It's the kind of dispute that could drag on for months, but investors appear willing to look past it for now.
The Numbers Tell the Story
Intel's performance this year has been remarkable. The stock has climbed 82.05% year-to-date, crushing the Nasdaq 100's 20.32% return over the same period. Over the trailing twelve months, shares have gained 53.06%.
On Wednesday, the stock rose 2.74% to close at $36.81 per share. It was trading 1.25% higher in premarket on Friday.
The technical momentum shift signals that investors are prioritizing macroeconomic tailwinds over legal uncertainty. With rate cuts potentially on the horizon and Intel's manufacturing ambitions requiring massive capital investment, the market is betting that lower borrowing costs will matter more than whatever happens with the TSMC investigation. Whether that bet pays off depends on both the Fed's next move and how the legal drama unfolds.