Intel is set to report results that investors hope will confirm a long-awaited turnaround, as surging AI data-center investment boosts demand for its traditional server chips.
Shareholders are increasingly confident that CEO Lip-Bu Tan’s restructuring efforts are taking hold. After years of strategic missteps—including a failed AI roadmap and deep job cuts—Intel’s stock rebounded sharply, rising 84% in 2025, far outpacing the broader semiconductor index.
Investor sentiment has been reinforced by major capital injections, including $5 billion from Nvidia, $2 billion from SoftBank, and backing from the U.S. government The funding has strengthened Intel’s balance sheet and given Tan room to overhaul manufacturing operations, streamline management, and reset the company’s AI strategy.
Analysts expect Intel’s data-center business to jump more than 30% to $4.43 billion in the December quarter, driven by hyperscalers building advanced AI infrastructure that still relies heavily on Intel’s server CPUs alongside GPUs from rivals. The PC unit is forecast to post a modest 2.5% increase to $8.21 billion.
Still, challenges remain. Intel continues to lose PC market share to AMD and Arm, while rising memory prices could weigh on global PC demand in 2026. UBS now projects a 4% decline in PC shipments, citing higher component costs.
Intel is betting on its refreshed product lineup to narrow the gap. The company has begun shipping Panther Lake PC chips, its first built on the critical 18A manufacturing process, a milestone seen as key to regaining technological credibility and attracting external foundry customers.
Wall Street optimism is growing, with at least 10 brokerages upgrading Intel or raising price targets in recent months. Yet analysts caution that while momentum is improving, the company still has “a long way to go” to fully reclaim its competitive edge.
