Intel Stock Had a Banner Year But Is Still 50% Off Its Record Highs. Are More Gains in Store for 2026?

Core Viewpoint - Intel's stock has significantly outperformed this year due to CEO Lip-Bu Tan's strategic vision, which has renewed investor confidence in the company's competitive stance in the global AI market [1] Group 1: Company Performance - Under Lip-Bu Tan's leadership, Intel has secured billions in private and federal investments to advance its foundry ambitions [1] - Despite a strong year, Intel shares are still down approximately 50% from their pandemic high, indicating ongoing structural and execution risks [2] Group 2: Market Dynamics - Recent setbacks for Intel include Nvidia's decision to scrap plans for producing advanced chips using Intel's 18A node, but long-term prospects remain positive due to high demand for chips [3][4] - Major companies like Apple, Qualcomm, and AMD are exploring alternatives due to unprecedented AI-driven demand, which reinforces Intel's role as an auxiliary capacity provider [3] Group 3: Future Outlook - The upcoming "14A" process, expected to enter volume production in 2028, is seen as a critical inflection point for Intel, particularly in competition with companies like Nvidia and Apple [5] - Intel shares are currently valued at just over 3 times sales, making them attractive compared to Nvidia's valuation of over 35 times sales [5] Group 4: Analyst Sentiment - Wall Street analysts maintain a consensus rating of "Hold" for Intel shares, with a mean target price of nearly $37, which aligns with the current trading price [7]