Intel (INTC) Stock Jumps 6% as New AI Chips Launch on Advanced 18A Process

TLDR

• Intel stock jumped over 6% on Wednesday, extending gains to 15% in the first four trading sessions of 2026
• The company launched its first “Panther Lake” AI PC chips using the new 18A manufacturing process on January 5, 2026
• The Trump administration invested nearly $10 billion in Intel in August, making the U.S. government its largest shareholder
• Nvidia invested $5 billion and agreed to collaborate with Intel on data center technology
• Intel’s third-quarter revenue rose 3% to $13.7 billion, with management noting demand exceeds supply

Intel stock climbed more than 6% on Wednesday as investors reacted positively to the launch of the company’s new AI PC chips. The rally extends a strong start to 2026 for the chipmaker.

Intel Corporation, INTC

Shares have gained 15% in just the first four trading sessions of the new year. That momentum builds on an 80% gain throughout 2025 as confidence in Intel’s turnaround plan grew stronger.

The latest surge came after Intel unveiled its Core Ultra Series 3 processors on January 5. These “Panther Lake” chips represent the first products manufactured using Intel’s 18A process. Intel calls 18A “the most advanced semiconductor process ever developed and manufactured in the United States.”

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

The launch marks a critical milestone for Intel’s foundry business. The company has spent years trying to prove it can compete with Taiwan Semiconductor Manufacturing Co. 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 began cutting costs and selling assets. But shares stayed under pressure as doubts persisted about the foundry’s future.

Government and Nvidia Investments Change the Picture

Everything changed in August when Tan met with President Trump. The Trump administration announced a nearly $10 billion investment in Intel. That made the U.S. government Intel’s largest shareholder.

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

Investors liked what they saw. The cash infusions provided financial stability. The 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. The stock climbed from its slump as confidence returned.

The Trump administration views Intel as critical to national security. With tensions escalating between the U.S. and China, American chip manufacturing has become a priority. Intel represents the only viable U.S. alternative to Asian manufacturers who make essentially all of the world’s most advanced semiconductors.

Financial Performance Shows Improvement

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

The sequential improvement is clear. Intel reported a 7% revenue decline in the fourth quarter of fiscal 2024. First and second quarter revenue was flat year-over-year. Third quarter revenue turned positive with 3% growth.

Reitzes predicts more good 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 watching closely for insights into orders for the new Panther Lake chips.

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