Intel Corporation has staged a dramatic comeback to open 2026, with its stock surging 31% in the first few weeks of the year. This performance marks the third-best start in the S&P 500 Index and signals a profound shift in investor sentiment. After a painful 2024 defined by a 60% share price drop, the company has successfully reclaimed its position within the artificial intelligence trade, recovering nearly all the ground it appeared to have lost to rivals.
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The primary driver of this optimism is Intel’s evolving identity as a major semiconductor foundry. Wall Street analysts are increasingly confident in the company’s 18A manufacturing technology, which KeyBanc analysts suggest could position Intel as the world’s second-largest foundry supplier, ahead of Samsung.
Key catalysts fueling this momentum include:
- Potential High-Profile Partnerships: Speculation is mounting regarding a potential agreement with Apple to manufacture chips for future MacBooks and iPhones.
- Advanced Packaging Demand: As supply remains tight at TSMC, Intel is positioned as a unique alternative for foundry wafer customers seeking advanced packaging solutions.
- Strategic Investments: Financial backing from industry giants like Nvidia and SoftBank Group Corp. has helped shore up Intel’s balance sheet, providing the capital necessary for massive infrastructure scaling.
Intel’s domestic manufacturing footprint has become a strategic asset under President Trump’s “America First” campaign. As a rare manufacturer of advanced chips on U.S. soil, Intel is perceived as a hedge against geopolitical instability in Taiwan. Analysts note that any disruption to Taiwan Semiconductor Manufacturing Co. (TSMC) due to regional tensions would likely accelerate the migration of customers to Intel’s domestic facilities. This alignment with Washington power brokers has transformed Intel into a “favoured” tech entity in the current political climate.
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Under the leadership of CEO Lip-Bu Tan, who took the helm last year, Intel has pivoted back to its engineering roots. Investors have responded positively to this shift away from what some shareholders described as “decades of mismanagement”. Financial firms like Citi and KeyBanc recently upgraded the stock, with KeyBanc setting a Street-high price target of $60.
While the company’s revenue is projected to rise 3% in 2026, some caution remains. The stock is currently trading at its highest price-to-sales ratio in over two decades, leading some analysts to warn of a potential pullback if upcoming results do not meet high expectations. All eyes are now on January 22, when Intel reports its fourth-quarter earnings. Investors will be looking for concrete confirmation of new foundry partners and updates on the 18A roadmap to justify the stock’s premium valuation.
