Intel is back from the dead, and betting the company on AI
Some analysts are calling Intel (INTC) stock the comeback of a lifetime as the chipmaking giant, best known for designing and manufacturing computer processors, has refocused on higher-growth industries after years of strategic missteps, while attracting renewed support from venture capital heavyweights and the U.S. government.
Intel is one of the few major technology companies that dates back to the dot-com boom of the late 1990s and early 2000s. Despite failing to reclaim its record highs since August 2000, the company remains a roughly $180 billion semiconductor juggernaut, according to data from Yahoo Finance.
The stock has had flashes of resurgence. During the pandemic-era rally, Intel appeared poised to retest all-time highs, climbing to nearly $70 per share in April 2021 before a brutal multi-year correction set in.
By the end of 2024, shares were trading in the teens, weighed down by shrinking margins, execution concerns, and deeply negative investor sentiment.
That narrative shifted sharply in 2025. The stock is now up roughly 86% year to date, fueled by optimism surrounding new CEO Lip-Bu Tan and his push to refocus Intel around artificial intelligence, strategic partnerships, and cost discipline. The stock is now valued at over $37 per share.
Investor confidence gained momentum in September, when Nvidia announced a $5 billion strategic investment tied to Intel’s CPU roadmap, signaling rare validation from the AI chip market’s dominant player.
Intel has also benefited from a $2 billion investment from SoftBank, a move seen as strengthening the credibility of its manufacturing and foundry ambitions.
Meanwhile, backing from the U.S. government in the form of a direct $8.9 billion investment has reinforced Intel’s role as a strategic national asset, even as it reignited debate over the government’s involvement in private industry.
Intel zeroes in on AI
Intel’s push into artificial intelligence has grown more deliberate, with the company reportedly nearing a $1.6 billion acquisition of AI chip developer SambaNova.
As first reported by Bloomberg, the deal could be finalized as soon as January, a move that would accelerate Intel’s efforts to expand and modernize its AI product portfolio.
While Intel refused to comment on the pending deal, the connection is obvious: CEO Lip-Bu Tan currently serves as chairman of SambaNova, according to Bloomberg.
Founded in 2017 by professors from Stanford University, SambaNova is a California-based startup that designs custom AI processors and systems optimized for training and running large language models and enterprise AI workloads.
The company has positioned itself as an alternative to traditional GPU-based architectures, focusing on scalability and on-premise AI capabilities for corporate and government customers.