Key Points
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A $10,000 investment in Intel on Jan. 2 is worth about $30,561 as of this writing.
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Intel’s foundry revenue rose 16% year over year last quarter, and data center and AI revenue climbed 22%.
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Intel reports second-quarter results on July 23.
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A $10,000 investment in Intel (NASDAQ: INTC) at its Jan. 2 closing price of $39.38 would have bought about 254 shares. At Thursday’s close of $120.35, that stake is worth about $30,561 as of this writing. In six months, the money more than tripled.
But two footnotes belong next to that figure. First, it was briefly even better: at Intel’s June 30 close of $139.63, the same stake was worth more than $35,000, before the stock gave back about 14% across the first two trading sessions of July. Second, almost nobody saw this coming. In January, Intel was still widely viewed as the chipmaker that had missed the artificial intelligence (AI) boom.
Which raises the question for everyone who watched from the sidelines: What turned Intel into 2026’s most dramatic large-cap comeback, and what has to keep going right from here?
How Intel tripled
The rally wasn’t built on PCs. It was built on two things: booming demand for the processors that feed AI data centers, and renewed faith in Intel’s foundry — the company’s long-suffering bet on manufacturing chips for other companies.
Intel’s first-quarter results, reported in April, showed both engines running. Revenue in the company’s data center and AI segment rose 22% year over year to $5.1 billion, and Intel Foundry revenue grew 16% to $5.4 billion, while the classic PC chip business grew just 1%. Total revenue rose 7% to $13.6 billion, and non-GAAP (adjusted) earnings per share more than doubled, to $0.29.
“This deliberate reset to how we operate drove a sixth consecutive quarter of revenue above our expectations, as well as new and deepened relationships with strategic partners,” said CEO Lip-Bu Tan in the company’s first-quarter earnings release.
For years, the foundry consumed cash and produced doubt. What changed in 2026 is that customers — and investors — began treating the manufacturing turnaround as on schedule. Each new commitment matters twice over. It brings future revenue and signals to prospective customers that Intel’s factories can be trusted with cutting-edge work.
Add a chip sector in full boom, and the repricing was violent. A stock that entered the year priced for slow decline exited June priced for a successful transformation.
What has to keep going right
But now Intel investors face a problem: At a valuation of about $604 billion, Intel is priced as if both its transformation succeeds and its business will grow rapidly for years to come — even though the company remains unprofitable over the trailing 12 months. When a stock reprices from skepticism to confidence this quickly, the burden of proof shifts to every subsequent quarter.
The next test arrives July 23, when Intel reports second-quarter results.
When the report is released, three things will arguably matter most: whether foundry revenue continues growing, whether gross margins continue to expand, and whether new customer names continue to arrive. Because the gap between today’s revenue and today’s price tag is bridged almost entirely by future contracts and expanded profitability.
Meanwhile, the stock’s early July slide is a preview of what happens when confidence wobbles. Shares of Intel fell about 9% in a single session on July 1 amid a broad pullback in chip stocks, with no company-specific stumble required. After a run like this year’s, many of the stock’s owners arrived recently and can leave quickly, which could make drawdowns sharper.
So what should investors who feel they missed it do? The honest answer is that the stock’s single biggest repricing — from left-for-dead to credible — is probably already over. From here, returns likely have to be earned the slow way, through quarters of foundry growth and proof that profits are following the revenue.
I wouldn’t chase the stock after a triple, and I personally wouldn’t buy ahead of the July 23 report either. But for patient investors who believe American chip manufacturing has years of demand ahead of it, Intel remains one of the most direct ways to own that idea. Bought gradually, in a position sized to survive the swings a stock like this all but guarantees, it can still earn a place in a long-term portfolio.
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Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.
