TLDR

  • Intel shares surged over 6% on Wednesday, with gains expanding to 15% in the first four trading sessions of 2026
  • The firm introduced its initial “Panther Lake” AI PC chips utilizing the new 18A manufacturing process on January 5, 2026
  • The Trump administration injected nearly $10 billion into Intel in August, positioning the U.S. government as its largest shareholder
  • Nvidia invested $5 billion and agreed to collaborate with Intel on data center technology
  • Intel’s third-quarter revenue grew 3% to $13.7 billion, with management noting that demand surpasses supply

Intel stock rose by more than 6% on Wednesday as investors reacted positively to the launch of the company’s new AI PC chips. This rally extends a strong start to 2026 for the semiconductor manufacturer.

INTC Stock Card

Shares have advanced 15% in just the first four trading days of the new year. This momentum builds on an 80% increase throughout 2025 as confidence in Intel’s turnaround strategy strengthened.

The latest upward movement followed Intel’s unveiling of its Core Ultra Series 3 processors on January 5. These “Panther Lake” chips mark the first products manufactured using Intel’s 18A process, which the company refers to as “the most advanced semiconductor process ever developed and produced in the United States.”

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

The launch represents a critical milestone for Intel’s foundry business. The company has spent years working to demonstrate its ability to compete; 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 initiated cost-cutting measures and asset sales. However, shares remained under pressure as doubts persisted about the foundry’s future.

Government and Nvidia Investments Change the Picture

A turning point occurred in August when Tan met with President Trump. The Trump administration announced a nearly $10 billion investment in Intel, making the U.S. government the company’s largest shareholder.

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

Investors responded favorably to these developments. The cash infusions provided financial stability, and 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, climbing out of a 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 rising between the U.S. and China, American chip manufacturing has become a priority. Intel stands as the only viable U.S. alternative to Asian manufacturers, who produce essentially all of the world’s most advanced semiconductors.

Financial Performance Shows Improvement

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

The sequential improvement is clear. Intel reported a 7% revenue decline in the fourth quarter of fiscal 2024, with first and second quarter revenue 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 stated that demand for Intel products exceeds supply, expecting this trend to continue into 2026.

Reitzes predicts more positive 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 closely monitoring insights into orders for the new Panther Lake chips.