What is the story about?
Intel’s stock surged more than 6 per cent on Wednesday, buoyed by renewed investor confidence in its long-struggling chip manufacturing arm and optimism surrounding its latest push into AI computing.
The jump followed the company’s unveiling of Panther Lake, its next-generation AI PC chips, and, crucially, the first product built using Intel’s long-awaited 18A manufacturing process. The launch marks a turning point for the US semiconductor giant, which has spent years fighting to regain credibility as a leader in advanced chipmaking.
Intel boost to chip manufacturing
Intel’s foundry business began 2025 on shaky ground. After a string of costly missteps and missed deadlines, CEO Pat Gelsinger was forced out, leaving the company’s future uncertain. His replacement, chip industry veteran Lip-Bu Tan, took charge in March with a mandate to stabilise operations.
He swiftly embarked on a wave of cost-cutting, selling non-core assets and trimming expenses. But even as Tan’s efforts gained traction, scepticism lingered over Intel’s ability to compete with Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s dominant chip foundry.
That uncertainty began to fade in August, when a pivotal meeting between Tan and President Donald Trump reshaped Intel’s fortunes. The Trump administration soon announced a sweeping $10 billion investment in the company, a move that made the US government Intel’s single largest shareholder.
Barely a month later, Nvidia joined the fray, revealing a $5 billion investment of its own and pledging to collaborate with its long-time rival on data centre technology.
Those twin announcements injected both capital and credibility into Intel’s turnaround story. Investors cheered the twin show of support, sending Intel’s shares skyrocketing from their summer lows.
By December, the stock had more than doubled in value, transforming sentiment around a company that just months earlier had been seen as a fading giant.
US and Nvidia to the rescue
Intel’s resurgence is now being powered by two of the most influential players in technology and politics. Nvidia’s involvement, though cautious, has been viewed as a signal that the graphics chip titan sees value in working with Intel on AI infrastructure, even if it hasn’t yet committed to using Intel’s foundry services.
Meanwhile, the Trump administration’s backing is seen as a strategic play to reinforce US self-sufficiency in semiconductor production amid rising tensions with China.
In an interview with CNBC, Ben Reitzes, head of technology research at Melius Research, claimed that the Trump administration and Nvidia is going to help Intel.
Intel’s future prospects could hinge on its forthcoming 14A manufacturing process, which promises even greater efficiency and performance. Reports last year hinted that Apple was exploring a potential partnership, a rumour that has since gained traction among industry watchers.
After a tumultuous few years, Intel’s revival story appears to be gathering momentum. With support from Washington, collaboration from Silicon Valley, and a long-overdue technological breakthrough in hand, the company is once again being seen as a serious contender in the global chip race.
Intel’s shares have climbed 15 per cent in just the first four trading days of 2026, a sign that investors, at least for now, are betting on a comeback.
