Intel Jumps 3.6% as Nvidia’s $5 Billion Entry Price Looks Tiny

This article first appeared on GuruFocus.

Intel (NASDAQ:INTC), the semiconductor and foundry company, jumped approximately 3.6% to $91.37 Thursday as Nvidia’s bullish forecast ignited another rally across its supplier and partner network. The surge pushed Intel to nearly four times the $23.28 Nvidia paid for 215 million shares in Decembera spectacular paper gain on a strategic bet barely nine months old.

Intel’s second-quarter results supplied real fuel behind the excitement. Data Center and AI revenue soared 59% to $6.3 billion, Foundry revenue climbed 31% to $5.8 billion and total sales advanced 25% to $16.1 billion. Its rack-scale inference systems also pair Intel’s Xeon processors with Nvidia’s Blackwell GPUs, giving Intel a direct route into the AI infrastructure boom.

But the valuation is already running far ahead of the turnaround. At $91.37, Intel trades 186.97% above its $31.84 GF Value estimatea gap signaling that investors have priced in far more than Nvidia’s endorsement. The next leg cannot come from association alone: Intel must turn 18A manufacturing progress, foundry demand and data-center momentum into durable profits and cash flow.