Intel Sparks a Rally on AI Partnerships and Manufacturing Hints

Intel shares climbed roughly 2.5% on February 11 after a string of upbeat news, centering on a sizable investment in an AI software player and chatter about a major new manufacturing customer.

Intel has committed at least $100 million to SambaNova, a company offering AI software and platform solutions. The information came from Wedbush Securities and highlights CEO Lip-Bu Tan’s strategy of accelerating Intel’s entry into the AI arena through targeted partnerships.

SambaNova is expected to help Intel accelerate bringing its AI technology stack to market. The chipmaker is currently aligning its compute and memory roadmaps to capitalize on the expanding AI inference market.

In parallel, Intel unveiled a ZAM prototype—a new memory technology developed in partnership with SoftBank. The memory standard is planned to be available from 2029 and is designed to stack High Bandwidth Memory more efficiently. The project targets a major bottleneck for the AI industry: the data transfer between processor and memory.

MediaTek as a Potential 14A Customer

Unconfirmed reports have suggested that Intel may have secured MediaTek as a customer for its advanced 14A manufacturing process. If realized, MediaTek’s Dimensity chips could provide Intel with meaningful production volumes for this relatively new technology.

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

Apple is reportedly evaluating Intel’s 18A-P process for certain M-series chips. A deal with MediaTek would further bolster Intel’s foundry ambitions.

Nevertheless, there are technical hurdles. The 14A node’s backside power delivery (BSPD) complicates use in mobile chips due to higher heat generation. Whether MediaTek can overcome these challenges remains to be seen.

Strong Demand, Limited Capacity

Intel continues to grapple with supply constraints. Demand for data-center CPUs and AI infrastructure outpaces its manufacturing capacity. Management acknowledged that plants were producing “from the hand in the mouth.” Improvements are expected in the second quarter of 2026 as new facilities come online and yields improve.

Q4 2025 Results Beat Expectations

For the quarter ended December 31, 2025, Intel exceeded expectations on several fronts. Earnings per share came in at $0.15, above the $0.08 consensus estimate. Revenue reached $13.67 billion, topping the $13.37 billion analyst forecast.

Outlook and Street View

For the current quarter, Intel adopted a cautious stance, aiming for break-even earnings per share. Analysts remained divided: Citic Securities upgraded the stock to a “Buy” with a price target of $60.30, while other analysts warned about execution risks and potential margin pressure. On February 11, the shares peaked intraday at $49.55 with a trading volume of about 106 million shares.