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Intel (INTC) shares ended higher on Wednesday following reports that SK hynix (SKHY) is in preliminary talks with the semiconductor giant to manufacture memory chips on U.S. soil. The potential deal could involve SK hynix leasing a portion of INTC's semiconductor campus in Ohio or forming a joint venture with major cloud providers.

Intel has been nothing short of a blockbuster investment in 2026, currently up about 150% versus the start of this year.

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A partnership with SK hynix, a global leader in high bandwidth memory (HBM), presents a major operational victory for Intel's ambitious foundry strategy.

Although talks are reportedly exploratory, any agreement allowing the South Korean firm to utilize INTC's massive Ohio facility would monetize idle capacity and offset heavy capex.

Establishing domestic HBM production aligns closely with the U.S. supply chain incentives, while giving the semiconductor giant a key high-volume client.

All in all, securing a premier partner would validate Intel Foundry's capabilities against rivals like TSMC (TSM), transforming expensive infrastructure into commercial leverage.

Beyond the potential SK hynix deal, Intel's broader turnaround is gaining momentum on multiple fronts.

The firm's 18A manufacturing process, powering its next-gen Panther Lake chips, is showing solid high-volume execution.

Moreover, INTC plans on raising PC CPU prices by about 10% in early October to bolster its near-term margins. Coupled with plans to monetize non-core assets through an upcoming Altera IPO, Intel is showing clear signs of sustained operational recovery.

Note that executives have bought more Intel shares than they have sold in the trailing 12 months, the optics of which are clearly bullish for the semiconductor behemoth.

Interestingly, Wall Street analysts also remain convinced that the INTC stock price rally is not out of steam just yet.

According to Barchart, the consensus rating on Intel sits at "Moderate Buy," with the mean price target of nearly $114 indicating potential upside of about 14% from current levels.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com