Intel Stock Is Soaring: Is the Turnaround Gamble Finally Paying Off in 2026?

Intel's stock rockets as its high-stakes transformation hits a new gear. The chipmaker's bold pivot—once seen as a desperate long shot—is now delivering the numbers that make Wall Street sit up.

The Core Comeback

Manufacturing breakthroughs and aggressive foundry expansion are translating into real revenue growth. Market share gains in key segments aren't just PowerPoint promises anymore—they're reflected in the quarterly filings. The investment narrative has flipped from 'can they survive?' to 'how fast can they scale?'

AI Arms Race Acceleration

Intel isn't just playing defense. Its next-gen architectures are landing in a market starving for AI-capable silicon. While competitors scramble for capacity, Intel's integrated manufacturing model provides a rare edge—control over its own destiny in a supply-constrained world. The data center business, once bleeding, is now a growth engine again.

The Valuation Reality Check

Sure, the momentum is undeniable. But let's be real—this rally prices in perfection. One delayed node or missed product cycle could send the 'story stock' premium evaporating faster than a meme coin in a bear market. Wall Street loves a turnaround tale, but it hates surprises more.

The gamble isn't over. It's just entered a higher-stakes phase where execution is everything. Intel's soaring stock tells us the bet is working. The coming quarters will reveal if it's built to last.

Key Takeaways

• Intel stock soared on Wednesday, extending a recent run-up fueled by increasing confidence in its foundry business.
• The federal government and Nvidia both announced multi-billion dollar investments in Intel last year, helping to stabilize the company's finances and reassure Wall Street of its future prospects.

Shares of Intel (INTC) jumped more than 6% on Wednesday as investors grew more optimistic about the future of its chip manufacturing business.

Intel earlier this week unveiled its new "Panther Lake" AI PC chips, its first product made with its long-awaited 18A manufacturing process. The launch marked a milestone for the company that has for years been trying to prove it's capable of developing and scaling cutting-edge chip manufacturing processes.

Intel's foundry business entered 2025 in dire straits. The company’s CEO Pat Gelsinger had just been ousted after years of overseeing an expensive and largely fruitless effort to make Intel a viable competitor to chip manufacturing powerhouse Taiwan Semiconductor Manufacturing Co. (TSM). Chip industry veteran Lip-Bu Tan was made CEO in March. He immediately began cutting costs and selling assets to stanch the bleeding, but shares remained under pressure amid uncertainty about the foundry's future. 

Why This Is Important

Intel is seen by many as the only viable U.S. alternative to the Asian manufacturers that make essentially all of the world's most advanced semiconductors. This week's Panther Lake launch may increase Wall Street's and Silicon Valley's confidence in Intel's manufacturing abilities.

Then, in August, a chummy meeting between Tan and President Trump changed everything. The Trump administration announced a nearly $10 billion investment in the company, making the U.S. government Intel’s largest shareholder. A month later, Nvidia (NVDA) came on board, agreeing to invest $5 billion and collaborate with its competitor. 

Investors liked the infusions of cash, as well as the optics of support from the federal government and the world’s most valuable company. Shares soared out of their slump, more than doubling in value between early August and December. 

In recent months, investors have grown increasingly confident that the company’s backers can keep it afloat. “Nvidia’s a great shareholder. They’re going to help them. The TRUMP administration’s going to help them,” Ben Reitzes, head of technology research at Melius Research, told CNBC on Wednesday. 

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Nvidia has vowed to collaborate with Intel on data center technology, giving the latter a role in the rapid buildout of AI data centers currently underway. (Though it stopped short of committing to use Intel's foundry.) And the Trump administration, eager to assert America’s industrial might amid escalating tensions with China, is expected to champion Intel’s chip manufacturing business on national security grounds. 

“As we go throughout 2026, we’ll hear more good news about their future foundry prospects,” predicted Reitzes, who expects tech giants like Nvidia and Apple (AAPL) will be interested in Intel’s next-generation 14A manufacturing process when its rolled out in the coming years. Rumors that Apple is considering becoming an Intel foundry customer began circulating late last year.

Intel shares have gained 15% in the first four trading sessions of 2026.