Intel Stock Soars to Start the Year: Is It a Buy?

Core Insights - Intel's stock has increased by 15.5% year-to-date in 2026, following an over 80% gain in the previous year, indicating strong market momentum [1] - The surge in stock price is largely attributed to the excitement surrounding the new Intel Core Ultra Series 3 processors, which are built on the Intel 18A semiconductor foundry in the U.S. [1][2] Product and Technology - The Core Ultra Series 3 processors represent Intel's first AI personal computing platform utilizing the new U.S.-based Intel 18A process technology, which could significantly enhance Intel's market position in AI [2] - Intel claims that the Ultra Series 3 processors offer a competitive edge, delivering "up to 1.9x higher large language model (LLM) performance" and improved power efficiency [3] Market Demand and Sales - Pre-orders for the Core Ultra Series 3 processors began on January 6, 2026, with global availability set for January 27, 2026, although customer demand insights may take time to materialize [4] - Intel's fiscal third-quarter revenue rose by 3% to $13.7 billion, with CEO Lip-Bu Tan highlighting that AI is driving demand for compute across various product lines [8] Financial Performance - Intel reported earnings per share of 90 cents in the most recent quarter, a significant improvement from a loss of $3.88 in the same quarter last year, indicating a potential turnaround in profitability [10] - The company has a market capitalization exceeding $200 billion, despite ongoing challenges in achieving consistent profitability [9] Future Outlook - Intel's management anticipates that demand for its products will continue to outpace supply into 2026, suggesting a positive growth trajectory if the company maintains its current performance [10] - However, there are concerns that the stock may already reflect an anticipated turnaround, raising questions about future price appreciation given the uncertainties in the semiconductor industry [11]