Intel Stock Surges on Strategic Nvidia Investment

Intel shares opened 2026 with significant momentum, climbing over 5% on the first trading day of the year. This advance was fueled by the completion of a major $5 billion strategic investment from Nvidia. While this partnership signals a vote of confidence in Intel's direction, the company's manufacturing division still faces a critical period of proving its capabilities.

According to SEC filings made public in December, Nvidia purchased more than 214.7 million Intel shares at a price of $23.28 per share. This substantial equity stake forms part of a broader collaboration agreement focused on joint chip development for data centers and personal computers. For Intel, whose stock had already rallied 86% in 2025 following a period of steep losses, this endorsement arrives at a pivotal moment.

The alliance with the dominant force in AI chips provides Intel not only with a fresh capital infusion but also with considerable credibility. Industry observers note that Nvidia would be unlikely to commit billions of dollars without a genuine belief in Intel's ongoing turnaround strategy.

Manufacturing Ambitions Face Scrutiny

However, the outlook for Intel's foundry business is mixed. Reports indicate that Nvidia tested Intel's advanced 18A manufacturing process but halted further development work. This has raised questions about whether Intel can truly compete with the uncontested leader in chip fabrication, Taiwan Semiconductor Manufacturing Company (TSMC).

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

Intel management has highlighted progress with its 18A technology and growing interest in its upcoming 14A process. The company's Arizona facility has initiated high-volume manufacturing using its most advanced node, with a capacity expansion slated for 2026. Yet, the competitive viability of its production yields and cost structure remains to be demonstrated in the market.

The Crucial Panther Lake Launch

All eyes are now on the Consumer Electronics Show (CES) from January 5th to 9th, 2026, where Intel is expected to unveil its Panther Lake processor. This next-generation laptop CPU will be manufactured using the 18A process. The launch is seen as a critical litmus test for Intel's manufacturing prowess. A successful high-quality volume production run would serve as powerful validation. Conversely, any stumbles in the ramp-up would likely amplify existing skepticism surrounding the foundry operation.

Analyst opinions reflect this cautious optimism. Researchers at Cantor Fitzgerald raised their price target to $40 but maintained a neutral rating. Meanwhile, Morningstar analysts estimate a fair value of only $28 per share—significantly below the recent trading level near $39.

Upcoming Earnings to Provide Clarity

Further insight will come with Intel's quarterly report scheduled for January 29th. This disclosure should reveal whether the company has secured concrete customers for its contract manufacturing services and detail the pace of its restructuring under CEO Lip-Bu Tan. The competitive landscape remains intense, with Intel facing sustained pressure from rivals like AMD, TSMC, and Samsung in both chip design and production.