Key Takeaways
- Intel stock has gained 110% over the last year due to improved technical performance and a coherent artificial intelligence (AI) strategy under new CEO Lip-Bu Tan
- The company has announced partnerships with Nvidia and released new AI-related products, such as the Crescent Island data center GPU
- Despite a decline in revenue and operating loss in 2025, Intel’s price-to-sales ratio remains relatively low compared to its peers
- CEO Lip-Bu Tan’s successful track record at Cadence Design and early indications of progress at Intel make the stock a potential long-term bet
Introduction to Intel’s Resurgence
Intel stock has been gaining momentum in recent years, thanks to the company’s improved technical performance and a clear artificial intelligence (AI) strategy under the leadership of CEO Lip-Bu Tan. As stated in the article, "technical improvements and a coherent artificial intelligence (AI) strategy have begun to change investors’ perceptions of the chip giant." This is a significant shift from the company’s previous struggles, where it was surpassed by peers like AMD, Nvidia, and Taiwan Semiconductor (TSMC) in terms of technical advancements and fabrication infrastructure. With Tan at the helm, Intel is now poised to regain its position as a leader in the chip industry.
CEO Lip-Bu Tan’s Background and Vision
Lip-Bu Tan’s appointment as CEO of Intel in March 2025 marked a significant turning point for the company. As the article notes, Tan "rose to prominence in the chip industry as CEO of Cadence Design," where he led the company to a 2,650% stock increase during his 13-year tenure. Tan’s experience and track record have instilled confidence in investors, and his vision for Intel’s future is starting to take shape. As the article quotes, "a visible AI strategy seems to have already come together" under Tan’s leadership, with the company announcing partnerships with Nvidia and releasing new AI-related products.
Intel’s AI Strategy and Technical Breakthroughs
Intel’s AI strategy is focused on developing custom data center and PC-related products, as well as releasing new GPUs designed to handle AI inference workloads. The company’s partnership with Nvidia, a leader in AI accelerators, has tied Intel’s fortunes to the growing demand for AI technology. As the article notes, Intel’s new data center GPU, Crescent Island, "is designed to handle AI inference workloads, with a high memory capacity and competitive energy efficiency." Additionally, the company’s debut of its first AI PC platform built on its 18A process technology has given it a slight performance edge over its competitors.
Effects on Intel Stock
The market has responded positively to Intel’s improved technical performance and AI strategy, with the stock gaining almost 110% over the last year. As the article states, "investors appear impressed" with the company’s progress, and the stock’s price-to-sales ratio has increased. However, despite the surge in stock price, Intel’s financials still reflect a decline in revenue and an operating loss in 2025. As the article notes, "revenue fell by about 0.5% to $53 billion" in 2025, and the company lost $267 million. Nevertheless, the company’s sales multiple of just under 4 is still relatively low compared to its peers, making it a potential long-term bet for investors.
Is Intel a Smart Long-Term Bet?
While there are still uncertainties and variables to consider, Intel’s progress under CEO Lip-Bu Tan and its relatively low valuation make it an attractive option for investors. As the article concludes, "based on Tan’s track record and the stock’s still-low valuation, it could pay for investors to buy Intel stock at current levels." With the company delivering new AI products and technical breakthroughs, Intel is poised to regain its position as a leader in the chip industry. As Tan’s vision for the company continues to take shape, investors may want to consider Intel stock as a potential long-term bet, especially as AI technology continues to scale and drive demand for advanced chips and related products.
https://www.fool.com/investing/2026/01/28/is-chip-stock-smart-long-term-bet-ai-globally/
