Intel Has Recovered, But Greater Challenges Lie Ahead. What’s the Best Strategy for INTC in 2026?

Intel’s Remarkable Turnaround: A New Era for the Chip Giant

For much of the past ten years, Intel (INTC) has struggled to keep pace in the semiconductor industry, missing out on key trends like mobile technology, facing setbacks in manufacturing, and losing ground to competitors such as Advanced Micro Devices (AMD) in the data center market. However, as 2026 begins, both market data and news coverage suggest a dramatic shift—some are even calling it a “Silicon Renaissance.”

With Intel’s earnings report approaching next week, investors are eager to see what lies ahead for this unpredictable tech leader, which has seen its status in the Dow 30 fluctuate over the years.

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Stock Performance and Technological Advances

Intel’s stock has recently climbed to its highest point in nearly two years, reaching close to $47. This rally was fueled by a KeyBanc analyst upgrade and reports that the company’s 2026 server CPUs are already largely spoken for. The main catalyst for optimism is Intel’s 18A process node. At CES 2026, Intel introduced “Panther Lake,” the first consumer chips using this advanced 1.8nm technology, signaling that the company may finally be narrowing the performance gap with Taiwan Semiconductor (TSM).

Once seen as a faltering industry veteran, Intel has reinvented itself as a key player in America’s push for semiconductor independence. By splitting its manufacturing (Foundry) and design operations, the company has attracted significant interest from major cloud providers like Amazon and Meta. KeyBanc now sees Intel as a credible contender to become the world’s second-largest foundry, potentially surpassing Samsung.

Is the Rally Sustainable?

Despite these gains, Intel’s stock appears overbought. Chasing a share price that has already jumped 27% in early 2026 could be risky without a clear investment strategy. While technical charts suggest there may be more room to run, the upward momentum is starting to look stretched.

On a weekly chart, Intel has broken above a long-term trendline dating back to 2021—a bullish signal. Yet, in today’s volatile market, even stocks benefiting from the AI boom can experience sharp reversals.

Back to Square One, But With Renewed Energy

Recent data shows that while Intel has staged a comeback, its stock is essentially trading at the same levels as in 2019. Operationally and in terms of share price, the company is back where it started. However, with renewed momentum—bolstered by U.S. government support—Intel’s business outlook is brighter than it has been in years, even if the stock price has already surged significantly.

Looking ahead, Intel still faces the challenge of growing into its lofty 29x price-to-earnings-to-growth (PEG) ratio.

Final Thoughts: Proceed With Caution

Although Intel trades at a relatively modest 3.6x trailing sales, which helps offset some weaker historical fundamentals, the stock’s future gains may be harder to come by. While there is still potential for further upside, much of the easy profit has likely already been realized. Investors should approach with caution, as the company’s turnaround story may not be finished, but the risks are higher at these levels.

About the Author

Rob Isbitts is a semi-retired fund manager and advisor. He also writes about racehorse ownership as an alternative investment.

At the time of writing, Rob Isbitts did not hold any positions in the securities mentioned. This article is for informational purposes only and was originally published on Barchart.com.