Intel’s Resurgence: A Remarkable Turnaround Story Gains Momentum

After enduring a punishing multi-year decline, the American semiconductor behemoth Intel is staging a dramatic recovery. The company appears to have shaken off its former lethargy, stunning Wall Street with reports of sold-out server capacity and meaningful breakthroughs in its manufacturing operations. Once considered a persistent concern within the chip sector, Intel is now being reassessed by analysts. However, the critical question remains: is this fundamental shift truly sustainable?

The heart of the renewed confidence lies in Intel's strategic pivot. Market observers point to two primary drivers: an unexpectedly resilient core business and credible progress in its foundry ambitions. Industry reports indicate that Intel's server CPU capacity for 2026 is already virtually fully booked. This suggests that data center operators continue to have massive demand for traditional processors, alongside specialized AI chips.

Simultaneously, the company's manufacturing division is showing tangible results. The production yield for its pivotal "18A" technology is reportedly already near 60%. Analysts now believe Intel has a credible path to establish itself as the number two contract manufacturer, trailing only Samsung and TSMC. This outlook is bolstered by rumors of a potential partnership with Apple and political tailwinds from the U.S. government's "America First" industrial policy.

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

Wall Street Recalibrates Its Stance

The sentiment on Wall Street has undergone a radical transformation. Following significant pressure earlier in 2024, a series of analyst upgrades are now providing fresh momentum. KeyBanc analyst John Vinh has set a price target of $60, citing solid demand and concrete technological advancements. Even long-standing skeptics are retreating: Citigroup recently removed its longstanding sell recommendation on the stock. The rationale centers on capacity constraints at industry leader TSMC, which may present Intel with a unique window to win customers as an alternative foundry provider.

Persistent Challenges and the Upcoming Test

Despite a staggering share price surge of over 140% on a twelve-month basis, the operational comeback is not guaranteed. Experts continue to warn of market share erosion to rival AMD and providers of ARM-based chips. Furthermore, the recent gaming performance of Intel's new "Arrow Lake" desktop processors disappointed some, indicating the company has not yet reclaimed technical leadership across all segments.

The moment of truth arrives on January 22, when Intel releases its fourth-quarter earnings. After the recent rally to a new 52-week high, investors will scrutinize whether the financial results justify the current optimism. A key focus will be whether the company achieved its projected full-year 2025 profit of $0.34 per share.