Intel (INTC) Stock Surges 6% on Launch of New AI Chips Built with Advanced 18A Process

Intel's silicon gamble just paid off—big time.

The AI Arms Race Gets a New Contender

Forget the quiet hum of data centers; the real noise came from the trading floor. Intel stock ripped higher as the chip giant finally fired its shot in the generative AI war. The weapon? A new family of processors, forged on its cutting-edge 18A manufacturing node. This isn't just an iteration; it's Intel's declaration that it's back in the high-stakes game.

Why 18A Changes the Calculus

The 18A process represents the bleeding edge of semiconductor fabrication. It's about packing more transistors, driving efficiency, and chasing the performance needed to train and run massive AI models. While rivals have been grabbing headlines, Intel's been in the lab. This launch signals that the R&D bets are starting to mature into shippable, competitive silicon. The market's 6% vote of confidence suggests Wall Street thinks they might just have a runner.

The Street's Verdict: Cautious Optimism

Let's be real—the semiconductor sector loves a comeback story almost as much as it loves punishing missteps. A single-day pop is a positive signal, but the real test is in sustained execution and design wins. Can Intel claw back market share from the established incumbents? The new chips are a compelling answer on paper. Now, they need to prove it in the server racks of hyperscalers—where the real AI money gets made. After all, in tech, a rising stock price is often just the market's way of saying 'prove it.'

TLDR

• Intel stock jumped over 6% on Wednesday, extending gains to 15% in the first four trading sessions of 2026
• The company launched its first “Panther Lake” AI PC chips using the new 18A manufacturing process on January 5, 2026
• The Trump administration invested nearly $10 billion in Intel in August, making the U.S. government its largest shareholder
• Nvidia invested $5 billion and agreed to collaborate with Intel on data center technology
• Intel’s third-quarter revenue rose 3% to $13.7 billion, with management noting demand exceeds supply

Intel stock climbed more than 6% on Wednesday as investors reacted positively to the launch of the company’s new AI PC chips. The rally extends a strong start to 2026 for the chipmaker.

Intel Corporation, INTC

Shares have gained 15% in just the first four trading sessions of the new year. That momentum builds on an 80% gain throughout 2025 as confidence in Intel’s turnaround plan grew stronger.

The latest surge came after Intel unveiled its Core Ultra Series 3 processors on January 5. These “Panther Lake” chips represent the first products manufactured using Intel’s 18A process. Intel calls 18A “the most advanced semiconductor process ever developed and manufactured in the United States.”

The Cat is Out of the Bag.

Goodbye "Panther Lake." Hello Intel CORE Ultra Series 3.

Intel just dropped the stats at #CES2026, and the benchmarks are massive:

60% faster CPU speeds
77% faster gaming performance (Xe3 GPU)
180 TOPS (Trillion Operations Per… pic.twitter.com/tAQLKT9gdX

— Intel News (@intelnews) January 7, 2026

Pre-orders for the new chips began January 6. The processors will be available globally starting January 27. Intel claims the chips deliver up to 1.9x higher large language model performance compared to competitors.

The launch marks a critical milestone for Intel’s foundry business. The company has spent years trying to prove it can compete with Taiwan Semiconductor Manufacturing Co. Intel needs to show it can develop and scale cutting-edge chip manufacturing processes.

CEO Lip-Bu Tan took over in March after Pat Gelsinger was ousted. Tan immediately began cutting costs and selling assets. But shares stayed under pressure as doubts persisted about the foundry’s future.

Government and Nvidia Investments Change the Picture

Everything changed in August when Tan met with President Trump. The TRUMP administration announced a nearly $10 billion investment in Intel. That made the U.S. government Intel’s largest shareholder.

One month later, Nvidia agreed to invest $5 billion. The AI chip giant also committed to collaborate with Intel on data center technology. Though Nvidia stopped short of committing to use Intel’s foundry for manufacturing.

Investors liked what they saw. The cash infusions provided financial stability. The backing from both the federal government and the world’s most valuable company sent a powerful signal.

Shares more than doubled between early August and December. The stock climbed from its slump as confidence returned.

Ben Reitzes, head of technology research at Melius Research, told CNBC that Intel’s backers will keep the company afloat. “Nvidia’s a great shareholder. They’re going to help them. The Trump administration’s going to help them,” he said Wednesday.

The Trump administration views Intel as critical to national security. With tensions escalating between the U.S. and China, American chip manufacturing has become a priority. Intel represents the only viable U.S. alternative to Asian manufacturers who make essentially all of the world’s most advanced semiconductors.

Financial Performance Shows Improvement

Intel’s third-quarter revenue ROSE 3% year-over-year to $13.7 billion. The company swung to a profit with earnings per share of $0.90. That compared to a loss of $3.88 in the year-ago quarter.

The sequential improvement is clear. Intel reported a 7% revenue decline in the fourth quarter of fiscal 2024. First and second quarter revenue was flat year-over-year. Third quarter revenue turned positive with 3% growth.

CEO Tan noted that “AI is accelerating demand for compute and creating attractive opportunities across our portfolio.” Management said demand for Intel products exceeds supply. They expect that trend to continue into 2026.

Reitzes predicts more good news about Intel’s foundry prospects throughout 2026. He expects tech giants like Nvidia and Apple will be interested in Intel’s next-generation 14A manufacturing process. Rumors circulated late last year that Apple is considering becoming an Intel foundry customer.

The company reports fourth-quarter earnings on January 22. Investors will be watching closely for insights into orders for the new Panther Lake chips.