Intel's recent surge reflects improved fundamentals, with cost-cutting and foundry progress driving optimism, but valuation remains stretched relative to peers. Technicals show strong momentum, but resistance near $45 could cap near-term gains.

Market sentiment is cautiously optimistic, buoyed by broader semiconductor strength and Intel's recovery narrative, though Trump's hesitant stance introduces uncertainty. Short-term momentum favors bulls, but sentiment could shift if earnings disappoint.

Long-term risks persist, including execution challenges in advanced nodes and competitive pressures from TSMC and Nvidia, which may limit Intel's upside beyond 2026. While the stock has rebounded, structural risks warrant caution for long-term holders.

Technical signals show INTC breaking above its 50-day MA with rising volume, suggesting short-term strength, but RSI nearing overbought levels hints at potential pullback. Support at $42 must hold to sustain the uptrend.