Intel (INTC) Stock Jumps on Recovery Hopes Despite Fitch Downgrade

Aug 5 - Intel Corp. INTC popped over 3% on Tuesday, even as Fitch Ratings downgraded the chipmaker's long-term credit rating to BBB' from BBB+' and maintained a negative outlook. The agency flagged ongoing demand weakness and tightening profitability as key challenges for the Santa Clara-based company.

Fitch noted that Intel's credit profile remains under pressure and may take 1224 months to recover. The company needs stronger market conditions and successful product rollouts to bring EBITDA leverage back in line with the rating threshold. While Fitch acknowledged Intel's updated foundry strategy, tying capital expenditure to customer demand, as a net credit positive, it also warned of elevated risks in execution and technology delivery.

Despite the downgrade, investors responded positively to Intel's market strategy shift. The rally likely reflects optimism around the company's plans to refocus spending and regain momentum in a tough semiconductor landscape.

Meanwhile, broader chip sector names like Advanced Micro Devices AMD, Marvell Technology MRVL, and Micron Technology MU were also in focus.