Intel (INTC) Shares Soar 23.44% on $5B Nvidia Pact, AI Momentum

Intel (INTC) shares surged to their highest level since September 2025, with an intraday gain of 6.80% and a four-day rally pushing the stock up 23.44%. The recent momentum reflects renewed investor confidence in the chipmaker’s strategic direction and market positioning.

A key driver has been a $5 billion investment and collaboration with Nvidia, announced in late September, aimed at co-developing data center and PC products. The partnership, coupled with a $2 billion infusion from SoftBank and U.S. government support for domestic chip manufacturing, has signaled strong backing for Intel’s turnaround strategy. These moves bolster credibility in advanced manufacturing and AI integration, critical for regaining market share.

Positive industry signals also emerged from Micron Technology’s updated guidance. The memory supplier highlighted a strengthening traditional-server market—a core segment for Intel—and revised PC demand forecasts upward. With Intel holding a 76% x86-based PC market share, the improved outlook aligns with its focus on modernizing infrastructure for AI and cloud computing. Micron’s CEO noted robust growth potential, reinforcing expectations for Intel’s revenue stability.

Technological progress further underpins optimism. Intel’s 18A node, a cornerstone of its “five nodes in four years” roadmap, is now in high-volume production, with first sales of Panther Lake CPUs expected by year-end. This advancement positions Intel to compete with TSMC in cutting-edge manufacturing. The company also plans to introduce the 14A node by 2028, with potential for third-party foundry contracts to diversify revenue streams.

Government-driven reshoring initiatives, including U.S. efforts to reduce reliance on foreign chip production, have amplified support for Intel’s domestic expansion. Strategic collaborations, such as a custom Xeon CPU project with Amazon for agentic AI, highlight the company’s ability to secure high-value partnerships. These efforts address gaps in Intel’s AI server market presence while leveraging its strengths in traditional infrastructure.

Collectively, these developments—strategic investments, industry validation, and technological progress—paint a resilient trajectory for Intel. While challenges in AI server dominance remain, the company’s alignment with sector trends and policy priorities positions it to capitalize on long-term growth opportunities.