Intel (INTC) Shares Surge 18.18% on $5B Nvidia, $2B SoftBank Investments

Intel (INTC) shares surged to a peak unseen since September 2025, climbing 9.71% intraday and rising 18.18% over three consecutive trading days. The rally follows a $5 billion investment from Nvidia and a $2 billion stake from SoftBank, signaling renewed investor confidence in the chipmaker’s strategic direction. These partnerships, centered on co-developing advanced data center and PC solutions, aim to leverage Intel’s manufacturing expertise and Nvidia’s AI capabilities to address surging demand for high-performance computing. The backing from SoftBank further underscores optimism, aligning with global semiconductor innovation trends.

While the short-term catalysts are clear, Intel’s long-term trajectory remains uncertain. The company has faced persistent challenges, including declining revenue growth and poor profitability. Over the past three years, Intel’s revenue has contracted at an average annual rate of 9.4%, lagging the S&P 500’s 5.3% growth. Recent quarterly revenue rose just 0.2% year-over-year, and the firm reported a net loss of $21 billion over the past four quarters. Analysts note that despite the recent valuation boost, Intel’s stock still trades at a discount to its pre-2022 peak, raising questions about whether its current price reflects its operational realities.

The collaboration with Nvidia could position Intel to compete more effectively in the AI-driven computing landscape, where rivals like AMD have gained traction. However, structural risks persist, including Intel’s reliance on capital-intensive manufacturing and slower adoption of AI technologies compared to peers. Historical performance during downturns also highlights vulnerabilities, with the stock underperforming the S&P 500 in major market corrections since 2020. While the recent investments provide a financial lifeline, analysts caution that sustained recovery will depend on executing strategic partnerships, improving operational efficiency, and capitalizing on AI and data center opportunities. Investors are advised to monitor progress closely before committing capital.