Intel (INTC 5.95%) stock is roaring higher in Wednesday trading thanks to a combination of bullish catalysts. The company's share price was up 5.4% as of 12:30 p.m. ET amid the backdrop of a 1.6% gain for the S&P 500 and a 2.3% rally for the Nasdaq Composite.
The stock market is jumping thanks to news that the Trump administration is interested in lowering tariffs on China and reducing trade war tensions, and Intel is a getting a significant valuation boost from the trend. Shares are also moving higher thanks to a report from Bloomberg that says the company plans to lay off 20% of its workforce.
Recent comments from President Donald Trump, Treasury Secretary Scott Bessent, and White House press secretary Karoline Leavitt suggest that the administration is interested in making a trade deal with China that will significantly lower tariffs on the country's goods. If a deal were to materialize in the near future, it could be a substantial bullish catalyst for Intel stock and the market at large.
According to a new report from Bloomberg, Intel will reduce its current employee count by roughly 20%. The move is said to be concentrated on reducing the size of middle management and would come on the heels of another big cut to its workforce last year. New layoffs would likely be driven by a desire to lower expenses at a time when the business has been underperforming.
Intel is in the midst of a major restructuring under the leadership of new CEO Lip-Bu Tan, who became the company's top executive last month. In addition to cutting its workforce, selling off a 51% stake in its Altera programmable chips business, and other moves, the semiconductor company has reportedly been exploring deals that could see Taiwan Semiconductor Manufacturing and other chip giants step in to help run its foundry business. News about Intel's foundry strategy will likely be one of the stock's biggest performance drivers this year.
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