Intel's 2026 Comeback: Why This Stock Could Deliver Another Year of Gains

The Turnaround Narrative Gets Real

Intel (NASDAQ: INTC) staged a remarkable recovery in 2025, with shares more than doubling after hitting rock bottom. The catalyst? A genuine operational transformation under new leadership that’s finally giving investors reason to believe in a real turnaround.

When Lip-Bu Tan took over as CEO in March, he didn’t waste time. The veteran semiconductor executive immediately cut costs through aggressive layoffs, eliminated blank-check foundry investments, and tied future spending to actual customer commitments. It was painful but necessary medicine for a company that had been burning cash while losing ground to Advanced Micro Devices and struggling to convince anyone that its foundry services business was viable.

A War Chest Built on Strategic Partnerships

Tan’s cost discipline opened the door for something more interesting: landing major investment backing. The U.S. Government converted CHIPS Act grants into a nearly 10% equity stake, SoftBank pumped in $2 billion, and Nvidia invested $5 billion in an interesting partnership that will produce joint Intel-Nvidia CPUs for PCs and servers.

The result? Intel closed Q3 with over $30 billion in cash and short-term investments. For a company that was hemorrhaging money, this financial breathing room changes everything.

The Foundry Story Is Starting to Matter

Here’s where it gets compelling for 2026. Intel’s 18A process node is production-ready, and volume adoption is finally happening—not just internally, but from major external customers.

Microsoft is tapping Intel 18A for next-generation AI processors, marking a significant vote of confidence. But the bigger prize could be Apple. Recent analyst commentary suggests Apple is evaluating Intel’s 18A-P process for its lower-end M-series chips, potentially ordering 15-20 million units annually. Some reports even hint at iPhone chip production on Intel’s 14A node starting in 2028.

If Apple diversifies away from over-reliance on TSMC, it wouldn’t just be a win for Intel—it would be a signal that the company’s process technology is genuinely competitive again.

Why 2026 Could Be Another Strong Year

Panther Lake, Intel’s next-gen laptop chip built on 18A, ships before year-end with volume ramping in 2026. Clearwater Forest server CPUs hit the market in 2026 as well, both leveraging the company’s cutting-edge process technology.

The demand backdrop is perfect. AI chip shortages are creating massive strain on foundry capacity globally. TSMC’s waiting lists are legendary. Intel’s 18A and 14A nodes arrive exactly when the market needs them most, potentially capturing share from a supply-constrained leader.

Beyond foundry opportunities, Intel’s new manufacturing advances also improve competitiveness in core markets—PCs and servers—where it’s been steadily losing share for years. Recovery takes time, but the machinery is finally in motion.

The Risk-Reward at Current Levels

Sure, Intel stock has already doubled from its 2025 lows. But it’s still trading well below its all-time highs. The foundry business won’t deliver meaningful profits for years, even in a best-case scenario, so this remains a long-term bet on execution.

That said, if Intel actually lands marquee customers like Microsoft and Apple, it would represent validation that’s impossible to ignore—and likely spark additional customer wins. As this turnaround narrative gains traction through 2026, sentiment could easily fuel another significant rally.

The company isn’t out of the woods. But the combination of cost discipline, strategic capital partners, cutting-edge process nodes coming online, and real customer interest finally makes the bull case credible.