Intel Stock Surges Over 20% on Turnaround Signs

Intel shares experienced a significant surge of 24% on Friday, marking their most impressive single-day performance since October 1987. This remarkable ascent was driven by investors’ positive reaction to early indicators of renewed growth, fueled by the escalating demand across the artificial intelligence landscape. The stock closed at $82.57, extending its year-to-date gains to a staggering 124%, following an 84% jump in 2025.

This recent rally significantly surpassed the previous 23% gain observed on September 18, a day when Nvidia announced a $5 billion investment in the company. Under the leadership of CEO Lip-Bu Tan, who assumed his role early last year, Intel has successfully recaptured Wall Street’s attention. This resurgence is largely attributable to securing substantial investments from both the U.S. administration and Nvidia, alongside a strategic pivot that has positioned Intel to capitalize on the burgeoning AI market, an area where it had previously been on the periphery.

Analysts at Evercore ISI, in a post-earnings report, highlighted the transformative impact of the new CEO, stating, “INTC’s new CEO fixed the balance sheet and is executing on a strategy that appears to have put INTC back on the competitive track.” This assessment led to an upgrade of Intel’s stock rating to the equivalent of a buy.

The company’s first-quarter financial results further bolstered investor confidence. Revenue exceeded estimates, climbing 7.2% to $13.58 billion from $12.67 billion in the prior year. This marks a significant turnaround, as Intel had reported year-over-year revenue declines in five of the preceding seven quarters. Moreover, Intel provided an optimistic outlook for the second quarter.

This robust performance on Wall Street signifies a dramatic reversal of fortune for the U.S. semiconductor giant. The company had experienced a considerable downturn, losing 60% of its market value in 2024, which ultimately led to the ouster of its former CEO, Pat Gelsinger, in December of that year.

For an extended period, Intel largely remained on the sidelines of the artificial intelligence revolution. The company was hampered by manufacturing delays and was awaiting the emergence of a significant customer for its chip fabrication services. However, the narrative is shifting. Analysts are keenly observing the development and yields of Intel’s next-generation 14A manufacturing technology, slated for rollout in 2028 or later. Previously, Intel had indicated a preference to secure a major customer before committing to the substantial costs of scaling up to its newest process node. However, under Tan’s leadership, Intel has signaled a more aggressive approach. In a January statement on X, Tan declared that Intel is “going big time into 14A,” signaling a significant commitment to this advanced technology.

During Thursday’s earnings call, Tan elaborated that “multiple customers” are “actively evaluating the technology,” and its development is progressing at a faster pace than observed with its predecessor, the 18A technology. This indicates a potential acceleration in Intel’s manufacturing roadmap, crucial for competing at the leading edge.

The company’s data center segment is proving to be a primary engine of its current growth. Revenue in this division surged by 22% year-over-year, reaching $5.1 billion, largely propelled by the escalating demand for central processing units (CPUs) driven by AI applications. CEO Tan emphasized the critical role of CPUs in the AI era, describing them as an “indispensable foundation of the AI era” during the earnings call. This underscores Intel’s core strength in processor technology and its relevance in the current AI-centric market.

Analysts at Citi have echoed this positive sentiment, upgrading the stock to a “buy” rating from “neutral.” They anticipate a broad uplift in CPU sales across all suppliers over the coming years, positioning Intel to benefit from this widespread market expansion. The renewed focus on advanced manufacturing processes, coupled with strong demand in its data center business and a strategic push into AI-enabling technologies, paints a compelling picture for Intel’s future prospects.

Correction: A prior version of this story had the wrong year for the last time Intel had a stock move this big.