Intel Jumps 4% Premarket on BofA Upgrade as Semiconductor ETF Gains 3%
INTC•Bank of America upgraded Intel to buy from underperform, lifting its shares 4% in premarket trading alongside a 3% rise in the iShares Semiconductor ETF as chip futures recovered and West Texas Intermediate crude eased. Investors are also monitoring potential fund rebalancing ahead of a projected $1.8 trillion SpaceX IPO that could divert capital from Intel and peers.
1. BofA Upgrade Spurs Intel Rally
Bank of America raised Intel to a buy rating from underperform, prompting a 4% premarket surge in its shares. The upgrade reflects improved expectations for Intel’s near-term growth prospects and competitive positioning in the semiconductor market.
2. Sector Recovery and Oil Pullback
The iShares Semiconductor ETF climbed 3% before the opening bell, reversing last week’s 10% drop, while Dow, S&P 500 and Nasdaq 100 futures each added over 0.7%. West Texas Intermediate crude fell about 1% to $89 a barrel, relieving input cost concerns for chipmakers, even after U.S. forces conducted a second round of strikes on Iran.
3. IPO Rebalancing Risk Ahead of SpaceX Listing
Traders are theorizing that recent semiconductor weakness partly stemmed from investors freeing cash for a record $1.8 trillion SpaceX IPO projected this Friday. A similar pullback in Intel and peers could emerge as portfolio managers rebalance allocations to participate in this historic offering.
