This is as investors rallied behind Chief Executive Officer (CEO) Lip-Bu Tan’s aggressive cost-cutting measures that helped the chipmaker surpass quarterly profit estimates and regain stability amid a flurry of high-stakes bets on future growth.
The results mark a turning point for Intel, which has struggled to maintain relevance in the face of fierce competition and manufacturing setbacks. After a bruising 2024 that saw its first annual loss in nearly four decades, the company is now leaning on strategic investments and operational discipline to rebuild investor confidence.
Intel also drew support during the quarter from multi-billion-Dollar investments by Nvidia and Japan’s SoftBank as well as a United States (US) government stake, moves that offered a financial cushion as it works to revive growth.
These investments, along with Tan’s turnaround efforts, have offered a lifeline to the stock, which has rebounded by more than 90% in 2025, outperforming artificial intelligence (AI) chip leaders Nvidia and AMD. Intel trades at a 12-month forward price-to-earnings ratio of 71.51 versus 30.49 for Nvidia and 40.14 for AMD. “Intel has turned a corner and is steadying the ship,” said Ben Bajarin, CEO of Creative Strategies. “It feels like a strong setup for 2026.”
Intel said demand for its chips was outpacing supply, particularly in data centres where operators are upgrading central processing units to support AI workloads.
–Reuters–
