Intel (NASDAQ: INTC) stock staged one of the biggest rallies this week, surging nearly 30% on Thursday, but a key technical indicator suggests the chipmaker may face a correction or consolidation in the near term.
Despite Thursday’s rally, INTC shares closed the week down more than 3%, ending at $29.58. Over the past week, Intel stock has still gained more than 20%.
The latest surge was primarily fueled by investor enthusiasm surrounding Intel’s deal with semiconductor giant Nvidia (NASDAQ: NVDA).
The agreement, which included a $5 billion investment, sparked the biggest single-day jump in Intel’s share price in decades and reignited optimism around the struggling chipmaker.
From a technical perspective, Intel’s 14-day Relative Strength Index (RSI) climbed above 71, firmly placing the stock in overbought territory.
Typically, an RSI above 70 signals that buying momentum has reached unsustainable levels and that a short-term pullback may be imminent.
Intel stock key price levels to watch
The rally stalled near the $30.50 level, where shares met resistance and quickly reversed lower. This rejection suggests the stock may have reached a temporary peak, with downside risks now becoming more pronounced.
If a correction unfolds, the first potential support zone sits around $25, where the 20-day simple moving average (MA) is positioned. A deeper retreat could push the stock toward the $23 region near the 50-day average, a level that has previously acted as support.
At the same time, the broader story for Intel is more complex. In addition to the Nvidia deal, the company has lowered its 2025 non-GAAP operating expense outlook, strengthened its balance sheet through asset sales, and tied major foundry investments to firm customer commitments, reflecting greater financial discipline.
Even so, many analysts remain cautious, watching closely to see whether Intel can sustain its current momentum.
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