This article first appeared on GuruFocus.
Intel’s (NASDAQ:INTC) comeback could be one of the most surprising corporate turnarounds this year. After President Donald Trump publicly called for CEO Lip-Bu Tan’s resignation earlier this summer, few expected the story to flip this fast. But it did. Since the White House signaled plans to take a 10% stake in Intel, the company’s shares have climbed more than 50%, marking one of its strongest rallies in years. The political backing ignited a string of high-profile investmentsSoftBank committed $2 billion, followed by Nvidia’s (NASDAQ:NVDA) $5 billion partnership deal to co-develop chips for PCs and data centers. Reports also suggest Apple has explored a potential collaboration, though talks remain preliminary.
Beyond the headlines, Intel is quietly rebuilding the core of its business. The company confirmed that its next-generation Panther Lake chips, built on its 18A manufacturing process, are now in full production and slated for laptops early next year. This technology marks Intel’s long-awaited return to producing its most advanced chips in-house after years of outsourcing to TSMC. Intel’s management views the 18A process as a critical testone that could finally position its foundry unit to win new contracts from major designers like Nvidia and Apple (NASDAQ:AAPL), provided the performance holds up under industry scrutiny.
The next phase, however, may hinge on execution rather than momentum. Nvidia said it will monitor Intel’s progress before committing further, while Apple’s potential involvement could start with simpler products such as Apple TV chips. Still, Intel’s strengthened relationship with Washington could prove strategically valuable, offering companies a politically favored path to build in America without constructing their own facilities. Investors seem to sense that Intel’s reset is gaining tractionbut transforming optimism into long-term customer demand will be the real test of whether Lip-Bu Tan’s turnaround plan can endure.