Intel’s remarkable 220% surge in 2026 reflects optimism over its manufacturing revival, with key focus on the upcoming 14A process node and expanding foundry business amidst cautious investor enthusiasm.
Intel’s rebound has become one of the year’s sharpest rallies in large-cap technology. The stock has surged more than 220% in 2026, driven by stronger demand for its central processing units and growing confidence that the company’s manufacturing arm can recover from years of weakness. Even after that advance, some investors may still see room for further gains if the turnaround continues to improve. The case rests less on sentiment than on whether Intel can convert better execution into a durable foundry business.
The most recent quarterly figures suggest the business is moving in the right direction. Intel said second-quarter revenue rose 25% year on year to $16.1 billion, the fastest pace of growth it has posted in more than 15 years. Gross margin improved to 40.4% from 27.5% a year earlier, a notable sign that profitability is recovering alongside sales. The company also reported a GAAP loss of $2.16 per share, but that was heavily affected by a $12.53 billion non-cash charge tied to CHIPS Act funding rather than day-to-day operations. On a non-GAAP basis, Intel earned $0.42 per share.
The foundry division remains the central test. Intel Foundry generated nearly $6 billion in quarterly revenue, and the company said output ran 25% ahead of plan, yet the unit still posted a $2.1 billion loss. Just $293 million of foundry revenue came from external customers, which underlines the scale of the commercial challenge ahead. Intel is trying to persuade outside chip designers that it can compete with Taiwan Semiconductor Manufacturing in advanced manufacturing, but that effort depends heavily on the next process node, Intel 14A.
That node is now positioned as the defining milestone for the turnaround. Intel has said risk production is due in 2027, with high-volume manufacturing targeted for 2028, although TechSpot reported that chief executive Lip-Bu Tan described 14A as on track for risk production in 2028 and volume manufacturing in 2029. Either way, the technology is meant to be a step beyond current leading-edge chipmaking, with denser transistor placement and better efficiency than 2-nanometre-class processes. Intel’s finance chief, David Zinsner, has said customer discussions have moved beyond evaluation of 14A and towards capacity planning, a sign that interest is becoming more concrete.
That optimism has already found support on Wall Street. In June, Bank of America’s Vivek Arya upgraded Intel from underperform to buy, citing improving demand and the prospect of a stronger foundry franchise. Intel also raised a large amount of capital through a $23 billion secondary share sale in August to help fund its manufacturing build-out, which shows how expensive the strategy remains. The company expects third-quarter revenue of as much as $16.8 billion, according to its own guidance, but the stock now trades at a much richer valuation than it did for most of the past decade, leaving less margin for disappointment. For investors willing to tolerate execution risk, Intel may still be a buy, though the next phase of the story will depend on whether 14A turns into a genuine commercial win.
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