TLDR
- Intel shares climbed approximately 4% during premarket hours following JPMorgan’s rating change to Neutral from Underweight.
- The investment bank held its $85 price objective unchanged after Intel shares tumbled 36% since reaching their June high.
- AMD and Micron each posted approximately 3% gains as market participants renewed interest in chip stocks.
- CoreWeave shares recovered following a Goldman Sachs rating improvement, though questions about financing expenses persist.
- Upcoming quarterly reports from Meta and Tesla will provide fresh insights into technology capital expenditure and corporate results.
Intel (INTC) shares advanced roughly 4% during Monday’s premarket hours following a JPMorgan rating adjustment, sparking a broader technology sector recovery after the previous week’s decline. AMD and Micron each registered 3% increases.
JPMorgan Analyst Shifts Position on Intel Shares
JPMorgan’s Harlan Sur elevated Intel to Neutral from Underweight while maintaining his $85 price objective. The chipmaker’s shares had dropped 36% from their June high, narrowing the gap to Sur’s target.
Sur pointed to improved operational performance under Chief Executive Lip-Bu Tan, increasing appetite for AI-focused processors, and constrained availability of cutting-edge chips. He continues to anticipate additional market share erosion in Intel’s server business.
Broader semiconductor equity values also showed strength. Nvidia shares retreated last week even with its fresh AI model launches. Monday’s buying activity came after substantial declines throughout the chip industry.
The Nasdaq index dropped 4.5% during the prior week, while information technology sector constituents shed more than 6%. Goldman Sachs reported that hedge funds liquidated technology positions at the highest percentage level on record.
Technology-Focused Futures Lead Market Recovery Effort
Nasdaq-100 futures climbed 1.3% ahead of Monday’s market opening, while S&P 500 futures added 0.5%. Dow futures slipped 0.2%, showing the recovery remained concentrated in technology rather than spreading across the broader market.
CoreWeave advanced approximately 6% in premarket activity after Goldman Sachs lifted its rating. The shares had fallen roughly 25% during the previous week as market participants raised concerns about borrowing expenses. Recent reporting on CoreWeave’s debt showed bond yields approaching 15%.
Goldman affirmed that CoreWeave retained the capacity to fund its growth plans, though the firm reduced its price objective. The company has accumulated substantial debt to construct AI data center facilities, making borrowing costs a significant factor.
Technical indicators presented additional hurdles for the upward move. Nasdaq-100 December futures approached a 50-day moving average near 30,175, while S&P 500 futures encountered resistance around 7,775. Both markets maintained downward trajectories on their daily price charts.
Technology Sector Earnings Season Tests Recovery Momentum
Amazon shares moved higher after Morgan Stanley lifted its target to $350 and designated the retailer among its top selections. Datadog also posted gains following a Bernstein rating increase, while Cleveland-Cliffs rose after delivering quarterly results that exceeded expectations.
Meta and Tesla are scheduled to release quarterly financial results during the coming days. Looking ahead to its announcement, Meta’s third-quarter revenue outlook projected $61 billion to $64 billion, focusing market attention on advertising revenue and artificial intelligence capital spending.
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