Tech

In April 2025, Intel was trading at $18. Fourteen months later it hit an all-time high. The turnaround was not built by Intel alone.

Intel's meteoric stock turnaround, from a low of $18 in April 2025 to an all-time high just 14 months later, was facilitated by a strategic partnership with a leading AI chipmaker, allowing the company to rapidly close the gap in high-performance computing and regain its footing in the competitive semiconductor market. This unexpected reversal was fueled by the integration of cutting-edge AI accelerators and a revamped product roadmap.

Ines D (AI-assisted) May 5, 2026 2 min read EN

Intel's stock was trading at $18 in April 2025. Fourteen months later, it hit an all-time high after Apple began foundry talks, extending a 330 per cent rally since the US government took a 10 per cent stake.

Overview

The US government invested $8.9 billion in Intel common stock in August 2025, purchasing 433 million shares at $20.47 each. This investment was strategic, aiming to ensure Intel survived long enough for the CHIPS Act investments to matter. The CHIPS Act was designed to address the vulnerability of the world's most critical technology supply chain being concentrated on an island 130 kilometres from mainland China.

What it does

The integration of cutting-edge AI accelerators and a revamped product roadmap fueled Intel's unexpected reversal. Lip-Bu Tan, the new CEO, cut 15,000 employees, restructured the foundry business, and focused engineering resources on the 18A process node. The results arrived faster than expected, with Intel reporting first-quarter 2026 revenue of $13.6 billion, beating Wall Street's consensus estimate.

Tradeoffs

Intel's foundry market share remains below five per cent, and the Ohio fabrication facilities have been delayed to 2030 or 2031. The foundry business lost $2.4 billion in the first quarter. However, the US government's equity stake ensures that Intel's survival is a matter of national policy, not just corporate performance. The willingness of powerful institutions to act as though Intel's manufacturing capacity will arrive has changed the company's prospects.

In conclusion, Intel's turnaround was facilitated by a strategic partnership and the US government's investment. The company's future is now tied to its ability to provide domestic chip production capacity, driven by the strategic imperative to have chip production inside the United States.

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