The stock could soon reach its highest levels since the dot-com bubble burst nearly two decades ago.
Shares of Intel rose as much as 3.2% Thursday, and are on track for their best close since the tech bubble burst in late 2000. A close above $$52.48 will get them there.
At the height of the dot-com boom, Intel shares traded as high as $75.81 in August 2000, before bottoming out at $12.41 during the depths of the financial crisis.
Thursday's gains come as tech analyst Richard Swinburne hypothesized on Twitter that Intel chips could power the next generation Microsoft Xbox video game console as Intel seeks to get into the graphics processor business.
Intel tumbled as much as 9% in March after a Bloomberg News report said Apple may use its own in-house developed chips for new iPhones instead of its usual supplier, Intel.
"It is clear to us that Apple has been working towards a goal of 'moving up the stack' if only to keep Intel 'honest'," Credit Suisse said in a note to clients earlier this month. "But we see the sell-off as an over-reaction, especially ahead of what we expect to be strong earnings on 04/26."
Wall Street analysts polled by Bloomberg believe Intel could soon pass its recent high of $53.78, set in March. They have an average target price of $54.11, a 3% upside to Thursday's trading prices.
Intel shares are up 14.1% this year.