A new Google partnership and key manufacturing milestones are fueling Intel’s remarkable run.
Intel has had one of the most dramatic turnarounds in recent tech history, and its stock is moving at a pace that has left even seasoned investors doing a double take. Shares have climbed 225% over the past 12 months, hit a five-year high this week and surged another 43% in just six trading days, fueled in part by a freshly announced partnership with Google that the market greeted with considerable enthusiasm.
The Google deal that moved markets
Intel and Google announced a multiyear collaboration this day to develop artificial intelligence and cloud infrastructure together. The agreement includes expanded deployment of Intel Xeon processors across Google Cloud for AI, data processing and general-purpose computing. The two companies also plan to deepen their joint development of custom infrastructure processing units, specialized chips that handle networking, storage and security functions so that main processors can focus on higher-demand AI tasks.
The partnership is not a new relationship. Intel and Google have worked together for nearly two decades, but the expanded scope of the agreement signals a mutual commitment to building the next generation of AI infrastructure together. Google Cloud already runs Intel Xeon 6 processors in its C4 and N4 computing instances, and the latest deal aligns both companies across multiple generations of future chip development.
What else is driving the rally
The Google deal is the most recent catalyst, but Intel’s stock momentum has been building on several fronts throughout 2026.
- Manufacturing breakthrough: Intel’s 18A process node, which the company describes as the most advanced semiconductor manufacturing technology developed in the United States, has entered high-volume production at facilities in Arizona and Oregon. Improved manufacturing yields on this node have been a key factor in restoring confidence in the company’s long-term trajectory.
- Strategic investment: Nvidia invested $5 billion in Intel common stock as part of a partnership announced in September 2025, and SoftBank followed with a $2 billion investment. Those commitments from high-profile players sent a signal to the broader market that Intel’s recovery was being taken seriously at the highest levels of the industry.
- AI segment growth: Intel’s Data Center and AI division grew 9% year over year in the fourth quarter of 2025, with sequential revenue growth of 15%. Its custom chip business grew more than 50% in 2025 and crossed an annualized revenue run rate of $1 billion.
- New partnerships: Intel has also joined the Terafab project alongside SpaceX, xAI and Tesla to advance chip production technology, and is reportedly in discussions with Amazon and Alphabet about advanced packaging services.
The company is scheduled to report first-quarter fiscal 2026 earnings on April 23, with revenue guidance of approximately $12.2 billion at the midpoint.
What analysts are saying
The analyst community remains cautious despite the stock’s dramatic rise. Of the 45 analysts currently covering Intel, 34 rate it as Hold, five give it a Strong Buy, and five carry Sell or Strong Sell ratings. The consensus price target of around $45 to $47 sits well below the stock’s current trading price near $59, implying meaningful downside from current levels.
KeyBanc is among the more optimistic voices, maintaining an Overweight rating with a price target of $70, citing strong server CPU demand and recent price increases for both server and client processors. Some analysts project earnings growth of 150% for fiscal 2026 and as much as 766% for fiscal 2027, which has helped keep sentiment broadly positive even as near-term profitability remains elusive.
The stock’s forward price-to-earnings ratio of roughly 94 to 101 times earnings is an aggressive multiple for a company still working its way back to consistent profitability, and Intel did report a net loss in fiscal 2025. For investors watching from the sidelines, analysts suggest the risk-reward picture may look more favorable if the stock pulls back closer to the $47 to $52 range, or after a quarter that shows the foundry business clearly narrowing its losses.
The April 23 earnings report will be closely watched as a near-term test of whether Intel’s recovery is matching the market’s already high expectations.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The author and publication are not registered investment advisors and do not provide personalized investment recommendations.