If Nvidia (NVDA) has been a frontrunner in the world of AI, Intel (INTC) has been among the laggards. It’s therefore not surprising that INTC stock traded at 52-week lows earlier this year even as technology stocks (driven by AI growth) surged to new highs.
Intel has, however, been making amends to get back in the AI race and deliver growth. This has translated into a strong recovery for INTC stock from lows.
About Intel Stock
Intel is a designer and manufacturer of advanced semiconductors. The company’s major business segments include Cloud Computing Group, Data Center & AI, and Intel Foundry.
In the last five years, Intel has invested $108 billion in capital and $79 billion in R&D. Most of these investments are focused on expanding U.S. manufacturing capacity and process technology. With the company’s new chip facility in Arizona to begin high-volume production towards the end of 2025, the outlook is positive.
From significantly oversold levels, INTC stock has rallied by 65% in the last six months on renewed hopes of business growth acceleration.
David Tepper Sells Intel Stock
Legendary investor David Tepper sold his entire stake in INTC stock in Q3 2025. It's, however, worth noting that David Tepper had added the stock in Q2 2025 at an average buying price of $22.56. The recent rally in INTC stock provided a good opportunity for booking significant profits in quick time.
Having said that, the perspective is different for a medium- to long-term investor. The current phase of correction after a sharp rally can be considered a good accumulation opportunity. In Q3, SoftBank (SFTBY) bought INTC stock, adding 87 million shares to its holdings.
Additionally, the U.S. government's $8.9 billion investment in Intel’s common stock improves the company’s financial flexibility. At the same time, it underscores Intel’s credibility in strengthening the U.S. technology ecosystem.
It’s worth noting that the company’s new chip fabrication site in Arizona will feature the “most advanced semiconductor manufacturing process technology” in the United States.
Overall, it makes sense to be cautiously optimistic about INTC stock after a big rally. However, corrections are likely to be an accumulation opportunity as Intel does the catching-up in the AI race.
Intel’s Collaboration With Nvidia
There is little doubt on the point that Intel has been a laggard in the AI race. The markets reacted, and INTC stock touched lows in August 2025. However, the rally from 52-week lows has been sharp and points to possible growth acceleration in the AI business.
An important catalyst is the company’s collaboration with Nvidia. On Sept. 18, Nvidia announced that it will invest $5 billion in INTC common stock. Further, the companies will collaborate to jointly develop “multiple generations of custom data center and PC products.”
With Nvidia being a leader in the AI race, the partnership is likely to benefit Intel. It’s worth noting that Intel will be building NVIDIA-custom x86 CPUs for data centers, which is likely to have a meaningful addressable market. The companies will also collaborate for personal computing.
What Analysts Say About INTC Stock
Based on the rating of 42 analysts, INTC stock is a consensus “Hold.”
While 33 analysts opine that the stock is a “Hold,” one and five analysts have assigned a “Moderate Sell” and “Strong Sell” rating, respectively. A minority of two analysts recommend a “Strong Buy” for the stock.
Further, a mean price target of $36.27 implies an upside potential of 2.1%. The upside, therefore, seems capped after a strong rally in the last six months.
In terms of positives, there are two points to note. First, the most bullish analyst price target for INTC stock is $52. It implies an upside potential of 46.4%. Further, for FY 2026, analyst estimates point to year-on-year (YoY) earnings growth of 205.6%. Intel can be a potential turnaround story as it pushes for AI-driven growth.
On the date of publication, Faisal Humayun Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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