Intel shareholders are experiencing a renewed sense of optimism regarding the company’s future, buoyed by the anticipated results from CEO Lip-Bu Tan’s strategic turnaround plan. After a challenging period marked by setbacks, including a misguided AI product roadmap that resulted in severe competitive losses and significant layoffs, the company’s recent performance has sparked renewed investor interest.
In 2025, Intel’s stock soared by 84%, significantly outperforming the semiconductor industry’s average rise of 42%. This surge in share value reflects growing confidence among investors that Tan’s leadership is beginning to yield positive results, particularly as demand for its traditional server chips is being fueled by widespread data center expansions. Tan’s initiatives, including a notable $5 billion investment from Nvidia and $2 billion from SoftBank, have bolstered Intel’s financial position, allowing the company to realign its manufacturing and AI strategies effectively.
Analysts are optimistic, with Ryuta Makino from Gabelli Funds noting that current sentiment around the company is the most positive it has been in years. There is also a strong bullish case for Intel’s server CPUs, with expectations of a double-digit price increase in 2026. In anticipation of fourth-quarter results due soon, at least 10 brokerage firms have raised their price targets or ratings for Intel, indicating a solidifying belief in the company’s recovery.
Data compiled by LSEG suggests that Intel’s data center business could see a more than 30% increase, reaching $4.43 billion for the last quarter of the year. This growth is largely driven by major tech companies upgrading their data centers, which require Intel’s traditional server chips and CPUs, as well as graphics processors from companies like Nvidia. Additionally, sales in Intel’s personal computer segment are expected to rise by approximately 2.5% to $8.21 billion.
Despite these encouraging signs for the data center segment, analysts remain cautious about the personal computer market. Intel has been steadily losing market share to competitors like AMD and Arm, and recent increases in memory chip prices, a crucial component in PC manufacturing, could dampen demand for laptops in the coming months.
As Intel navigates these challenges, its current momentum in the data center sector provides a hopeful outlook for investors eager to see the company return to its former glory. The ongoing transformations under Tan’s leadership could set the stage for a more robust and competitive Intel in the fast-evolving tech landscape.