Intel shares jump by 11% amid tech-sector rebound

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Intel Corp shares soared by 11% in U.S. trading hours after a slew of positive partnerships were announced on Monday. The update comes as leading tech firms search for a stable supply of chips from foundries capable of mass production. 

As of now, the firms with a clear competitive foothold in the sector are ASML, TSMC, and Intel, the latter two of which possess chipmaking machines capable of manufacturing up to industry standards. 

Chipmaking firms and the tech sector experienced a rebound after a sell-off last week and Intel was one of the firms to benefit from its rally. 

Since 2025, Intel has gone through a series of changes which has officially separated its products division from its foundry division. 

Some of these changes meant the business had to engage in massive write-offs and accounting performance which have hampered financial performance in 2024, 2025, and on an LTM basis. These changes are to be viewed as more transitional than a permanent state as Intel has provided net profits ranging from $8.02 billion to $21.05 billion from 2016 to 2023. 

Recent write-offs for the company include:

1. $9.9 billion in tax-write offs which was due to low expectations on future income: This means Intel may not be able to access these credits in the near future, which is why they were removed off the balance sheet as part of accounting requirements. 
2. A factory equipment write-off of $3.1 billion: Some of Intel’s manufacturing equipment is now considered obsolete and unable to service current requirements. All of this equipment’s value has been written off in the form of depreciation. 
3. A goodwill write-off of $3.8 billion for its subsidiary Mobileye: Intel acquired autonomous driving tech firm Mobileye in 2017 for $15.3 billion. Since then, macro-economic headwinds and a general downturn for the autonomous industry have led to two key write-offs in the form of goodwill impairment, one in 2024 of $2.6 billion and one in 2026 of $3.8 billion in Q1 2026, bringing total value lost up to $6.4 billion.
4. Layoff and restructuring charges of $2.8 billion: In a bid to bring down operating expenses, Intel cut down its global workforce by 15%, an initiative which included severance packages, office closures, and canceled projects. 

Summary:

The following represents the author's analysis and opinion, not a statement of fact. Intel is one of the few companies that has a distinct advantage of being able to produce chips. As the company navigates a new phase where its foundry and products division are clearly split and with all bloat removed from operating expenses, the company is now repositioned under a newly organized workforce. 

Research references

• Intel Newsroom
• TIKR data
• Mobileye Releases First Quarter 2026 Results, Updates Full-Year Outlook, and Announces a $250 Million Share Repurchase Program
• Intel Corporation Annual report [Section 13 and 15(d), not S-K Item 405]
• Mobileye reports 27% revenue growth, raises 2026 guidance By Investing.com

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