Intel’s Foundry Ambitions Gain Crucial Validation at CES 2026

The long-awaited proof point for Intel’s manufacturing turnaround appears to have arrived. At the CES 2026 opening, the semiconductor giant officially launched its "Panther Lake" processors, signaling that its critical 18A fabrication technology has successfully entered volume production. This milestone, coupled with a significant analyst upgrade, is reshaping the narrative around the company's stock.

Adding momentum to the news, Melius Research upgraded its rating on Intel shares from "Hold" to "Buy" on Monday, assigning a price target of $50. Based on the previous closing price of $39.40, this implies an upside potential of approximately 27%. Analyst Ben Reitzes highlighted the stock's attractive valuation as a key reason for the optimism. Intel currently trades at roughly twice its book value, a stark contrast to its primary rival TSMC, which commands a multiple of 10.3 times book value.

The reassessment is partly driven by a notable external validation of Intel’s manufacturing capabilities. The upgrade specifically referenced a strategic investment from Nvidia, which recently acquired a stake of about 4% in Intel. Market observers interpret this move as a vote of confidence in Intel’s foundry business and its ability to produce high-performance chips on U.S. soil.

Manufacturing Milestone Achieved

The positive sentiment is grounded in a tangible technological achievement. The newly unveiled "Core Ultra Series 3" processors are the first mass-market chips manufactured using Intel’s advanced 18A process (below 2nm). This development represents a crucial practical test passed for CEO Pat Gelsinger’s "IDM 2.0" strategy.

Should investors sell immediately? Or is it worth buying Intel?

Beyond promising a 60% improvement in multi-threaded performance, the new chips target dominance in laptop efficiency with a claimed battery life of up to 27 hours. For investors, the performance gains are secondary to a more critical signal: proof that yield rates in the 18A process are now stable enough for high-volume manufacturing. This demonstration is a key prerequisite for attracting external clients like Microsoft or Amazon to utilize Intel’s foundry services.

The Market's Measured Response

Despite the cascade of positive developments, investor reaction on Monday was initially cautious. The stock exhibited high volatility, relinquishing early gains to close nearly flat. At $39.40, shares trade just below a fresh 52-week high of $39.66. The fact that a significant sell-off was avoided and the price remains well above the 200-day moving average of $24.83 points to underlying technical strength. However, the market seems to be awaiting more concrete evidence of sustainable profitability.

All Eyes on Financials and Demand

Attention now shifts to concrete demand and financial execution. While pre-orders for the new chips begin today, the definitive financial snapshot will arrive on January 29, 2026, when Intel releases its quarterly earnings. Investors will scrutinize whether margin projections for the new 18A products are being met and if the pipeline for the contract manufacturing (foundry) business has continued to expand. The upcoming report will determine if the technological breakthrough can translate into a financial one.