2023 was a year of resurgence for the US stock market, and the technology sector emerged as a standout performer, fueled by the relentless growth of artificial intelligence (AI).
Despite the macro challenges in the past two years, tech companies experienced a remarkable surge in demand, with chipmakers playing a pivotal role in this resurgence. While Nvidia (NASDAQ: NVDA) took much of the spotlight, chip giant Intel (NASDAQ: INTC) also garnered significant attention.
Culminating in an impressive feat, INTC surged to a new 52-week high on December 27 and is on track to cap off its best year since 2003.
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Best stock performance in 20 years
At press time, shares of Intel were standing at $50.76, 0.5% on the day. During the Wednesday session, INTC touched $51.28, the highest in 52 weeks. More precisely, this was Intel’s highest share price since March 2022.
As a result of its important role in the AI frenzy and the broader market recovery, Intel’s stock is up almost 90% year-to-date. This marks the best annual performance for the chip stock since 2003 when it closed the year with a 106% gain, according to Macrotrends data.
INTC’s stock rally picked up pace this month, driven in part by the Federal Reserve’s confirmation of upcoming rate cuts in 2023.
Hopes of a dovish pivot brought a fresh wave of optimism into the markets, pushing the S&P 500 to as high as 4,781, a hairbreadth of its all-time high.
Meanwhile, Intel also announced new computer chips in December. The product that garnered the most attention was Gaudi3, an AI chip designed specifically for powering generative AI softwares.
Intel plans to launch Gaudi3 in 2024, saying it is powerful enough to compete with rival chips from Nvidia and AMD (NASDAQ: AMD).
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