Intel Stock as a Long-Term Play: Can This Chip Maker Reclaim Its AI Leadership?

For years, Intel stock underperformed as competitors like AMD, Nvidia, and Taiwan Semiconductor Manufacturing Company surpassed it in chip design and fabrication capabilities. Previous management teams attempted but failed to restore the company’s dominance. Now, with CEO Lip-Bu Tan at the helm since March 2025, Intel appears to be charting a different course—one that might interest long-term stock investors seeking exposure to artificial intelligence growth.

New Leadership Brings Fresh Technical Strategy

Lip-Bu Tan’s appointment represents a significant shift in direction. Before joining Intel, he served as CEO of Cadence Design Systems for 13 years, during which the company’s stock climbed roughly 2,650%. He had also spent two years on Intel’s board (2022-2024), stepping down due to disagreements about the company’s strategic direction. Now leading Intel, Tan has moved quickly to implement a coherent AI-focused strategy that’s already capturing investor attention.

The question facing long-term stock holders is whether Tan’s proven track record at Cadence can translate into sustained success at Intel. Though less than a year has passed since he took over, tangible evidence of his AI strategy is already emerging.

Key Products Signal Competitive Resurgence

Intel’s recent moves demonstrate a clear pivot toward AI infrastructure. Last autumn, the company announced a partnership with Nvidia to develop customized data center and PC products, linking Intel’s fortunes to the world’s leading AI accelerator manufacturer. This collaboration signals Intel’s acknowledgment of market realities while positioning the company as a complementary player in the AI ecosystem.

More notably, Intel unveiled Crescent Island, a new data center GPU engineered specifically for AI inference workloads. The processor combines high memory capacity with competitive energy efficiency—critical factors for data center operators managing computational costs. Additionally, at the recent CES trade show in Las Vegas, Intel debuted its first AI PC platform built on its 18A process technology. These chips feature a backside power delivery design that provides a performance advantage over comparable products manufactured by foundry leader TSMC.

Stock Performance and Valuation: An Attractive Entry Point for Long-Term Investors

Investors have responded positively to these developments. Intel stock has surged approximately 110% over the past year, reflecting growing optimism about the company’s AI prospects. However, this enthusiasm isn’t yet fully reflected in the company’s financial performance.

During 2025, Intel’s revenue declined slightly by 0.5% to $53 billion, while the company posted a net loss of $267 million. Interest income offset most of the operating loss, but the company still lacks a meaningful price-to-earnings ratio. Despite this headwind, Intel’s price-to-sales ratio of just under 4 remains substantially below those of major competitors like Nvidia and TSMC. For long-term stock investors betting on the company’s recovery, this valuation cushion could prove valuable as new products eventually drive revenue growth.

Can This Chip Stock Deliver Long-Term Returns?

Several factors suggest Intel stock deserves consideration from patient investors. Tan demonstrated exceptional operational excellence at Cadence, executing a 2,650% return over his tenure. Early indicators at Intel—including strategic partnerships, innovative GPU products, and next-generation process technology—suggest he’s applying similar principles to drive the company forward.

The risks remain substantial. The semiconductor industry is fiercely competitive, and Tan must prove he can translate strategy into sustained profitability. However, given the CEO’s track record, Intel’s visible AI product roadmap, and the stock’s historically low valuation relative to peers, the risk-reward calculus may favor long-term stock accumulation at current price levels.

The Bottom Line

Intel’s transformation is still in its early stages, and no investment is risk-free. Yet for investors with a long-term outlook seeking exposure to AI infrastructure, Intel stock offers a compelling opportunity to own a company in transition at an attractive valuation—guided by a leader with a demonstrated ability to unlock shareholder value.