Intel Shares Jump After Plan to Raise Processor Prices by 10%

Intel shares rose 3.9% in pre-market trading following reports that the company intends to raise prices for PC processors by approximately 10% starting in early October. This move aligns with an ongoing shift toward improving profit margins rather than relying on sales growth driven by price cuts.

The move is part of CEO Lip-Bu Tan’s strategy to boost the company's profitability. It coincides with Northland upgrading Intel’s rating to "Outperform" and setting a price target of $120, citing progress in the turnaround plan, a shortage of server processors, and the Terafab partnership.

Intel Foundry has also made strides in advanced manufacturing technologies, announcing the processing of over a million chips using High NA EUV technology in collaboration with ASML. ASML has secured commitments from Intel, Samsung, and TSMC to adopt this technology, with individual machines costing approximately $400 million.