Intel results to spotlight turnaround efforts as AI data centers boost chip demand

By Arsheeya Bajwa

Jan 21 (Reuters) - Intel shareholders are optimistic astir the company's results similar they person not been for galore quarters, betting the turnaround CEO Lip-Bu Tan promised was taking basal and that accelerated information halfway physique outs were fueling beardown request ​for its accepted server chips.

A slew of high-profile investments engineered by Tan past twelvemonth piqued capitalist involvement successful a banal that ‌had crashed successful 2024 pursuing years of absorption missteps, including a botched AI merchandise roadmap that led to heavy competitory losses and thousands of occupation cuts.

Intel's banal gained 84% successful 2025, ‌far outperforming the benchmark semiconductor index's 42% rise.

A $5 cardinal concern from Nvidia and $2 cardinal from SoftBank, alongside the U.S. government's involvement successful the company, person strengthened Intel's equilibrium expanse and fixed Tan the flexibility to statesman reshaping the company's manufacturing and AI strategy.

Tan has besides overhauled the company's chipmaking operations and tightened what helium said was a bloated absorption structure.

"It's the astir optimistic, I think, radical person felt astir the institution successful a agelong time; the near-term dynamic's acceptable up precise ⁠well," said Ryuta Makino, expert astatine Intel capitalist Gabelli ‌Funds.

"That's truly the large Intel bull lawsuit present - I deliberation determination volition beryllium astatine slightest a double-digit server CPU (central processing unit) terms hike successful 2026."

At slightest 10 brokerages person raised their terms targets oregon ratings for Intel implicit ‍the past 2 months, indicating higher expectations from the company.

Intel is apt to study a much than 30% leap successful its information halfway concern to $4.43 cardinal for the 4th ended December, according to information compiled by LSEG.

The leap could beryllium attributed to large tech companies gathering retired precocious information centers that request Intel's accepted server chips ​and CPUs alongside graphics processors made by the likes of Nvidia.

Sales successful Intel's idiosyncratic machine portion apt roseate 2.5% to $8.21 billion.

A LONG WAY TO ‌GO

Intel has been consistently losing stock successful the PC marketplace to rival AMD and spot blueprint decorator Arm, and whitethorn present besides look weaker PC request arsenic a planetary shortage of representation chips has boosted representation spot prices and made laptops much expensive.

"While we stay bullish connected information halfway demand, we judge PC request whitethorn mean from expanding representation pricing, fixed representation accounts for 25% to 30% of PC measure of materials," UBS analysts said successful a enactment earlier this month.

The brokerage expects a driblet of 4% successful planetary 2026 PC shipments, compared with the implicit 3% maturation it projected earlier.