Intel Corp.’s shares rocketed to a record $85.22 last week, eclipsing the dot-com era peak and capping a year-to-date gain of over 120%. The chip giant’s stock jumped 24% in a single day following blockbuster first-quarter results, its best performance since 1987. Investors, long skeptical after years of missteps, now see a company reborn in the AI age.
Q1 revenue hit $13.6 billion, up 7% from last year and smashing Wall Street estimates by 11%, as reported by Intel. Earnings per share came in at $0.29, far above the expected penny. Guidance for the June quarter pointed to $13.8 billion to $14.8 billion in sales. Data Center and AI revenue climbed 22%, fueled by surging demand for server CPUs. And here’s the kicker: Intel even sold off chips it had written down, turning trash into cash amid shortages.
But. This isn’t just numbers. It’s a narrative shift. CEO Lip-Bu Tan, installed in March 2025, has steered Intel from the brink. Remember when veteran investor Michael Marks quipped, “Intel is where good reputations go to die”? That stung. Founded in 1960s Santa Clara, Intel once dominated chip manufacturing. Then came Nvidia, AMD, Arm—and AI looked like another knockout punch. No more. Tan’s moves, including deep partnerships with SoftBank and Nvidia, have inspired confidence, per Fortune.
Chief Revenue Officer Greg Ernst laid it out at Mobile World Congress. “The good news is the demand for server CPUs has never been higher… In the last six months, companies like Anthropic, Gemini, OpenAI, really moved to true agentic-model architecture… All of a sudden, the demand for CPUs has gone through the roof because all of these models need to communicate with each other.” CPUs excel at orchestration, managing data flow between AI agents. Supply can’t keep up. New AI chip customers? Tesla, among others.
Government backing sealed the turnaround. Last August, the U.S. took a 10% stake for $8.9 billion, now worth $36 billion. President Trump, after initial demands for Tan’s resignation over early China ties, called his story “amazing.” Ernst noted the feds stayed hands-off: “Their investment has been great… No, there has been none” on divestment pressure. Intel keeps transparent with China but flies the American flag.
The earnings explosion drew Wall Street cheers. Shares closed Friday at $82.57, up 124% for 2026 after 84% in 2025, according to CNBC. BofA’s Vivek Arya highlighted shortages driving the revival. Two firms slapped buy ratings post-earnings. MarketWatch called it Intel’s best day in nearly four decades, with the stock now fourth-best in the S&P 500.
Bloomberg captured the milestone: shares eclipsed dot-com highs after a sales forecast that shattered expectations, proving AI spending payoffs (Bloomberg). The Wall Street Journal noted AI agents propelling 20% jumps, with sales beating FactSet polls (WSJ). Financial Times reported the close above 2000 levels, extending a Trump-era rally (FT).
History haunts. In 2007, then-CEO Paul Otellini passed on iPhone chips: “I couldn’t see it.” Tan vows no repeat with agentic AI. Partnerships let Intel issue stock for technical ties, diluting but delighting investors who spot value.
Challenges linger. Cash burn persists at $2 billion quarterly, per X chatter. Foundry ramps like 18A show promise, but capex weighs. Stock at $84.81 Monday, market cap nears $415 billion (Yahoo Finance). Up from $18.97 lows. Triple-digit gains in 12 months.
Tan fixed the balance sheet, one analyst said via MarketWatch. Nvidia’s $5 billion investment last September ignited the run. Trump Truth Social posts boosted it further. AI isn’t just GPUs anymore. CPUs orchestrate the swarm of models.
So, is this sustainable? Demand screams yes—for now. Agentic AI needs Intel’s forte. Partnerships multiply. Government stake validates. But execution matters. Miss again, and reputations die anew. Investors bet on the resurgence. Shares hit records. The chip king wears a new crown.
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