The opening weeks of 2026 have delivered a stunning reversal of fortune for Intel, silencing many of its doubters. The catalyst for this dramatic market comeback is a dual-pronged capital and strategic investment from two formidable entities: artificial intelligence leader Nvidia and the United States Department of the Treasury. For shareholders, the pivotal question is whether this marks the definitive launch of a sustainable turnaround under the leadership of CEO Lip-Bu Tan.
Government Assumes a Major Stake
In a significant parallel development, the U.S. government has solidified its backing through the “CHIPS Act.” The Treasury Department has converted existing loans and grants into an equity position, acquiring a ten percent stake in Intel. This action effectively makes the U.S. government the company’s largest single shareholder. While the non-voting shares provide political security and balance sheet stability for Intel, they also come with an increased level of federal oversight.
A Landmark Partnership with Nvidia
Central to the recent stock rally is Nvidia’s confirmed strategic investment. The AI powerhouse is committing $5 billion to acquire approximately 214.8 million Intel shares at a price of $23.28 per share. Market observers note that this entry price sits notably below recent trading levels, interpreting it as a clear signal from Nvidia that it views Intel’s manufacturing capabilities and patent portfolio as fundamentally undervalued.
This 4.4% equity stake, however, extends far beyond a simple financial injection. The two chipmakers have announced a collaborative technology partnership. Their joint objective is to develop computing systems that integrate Intel’s x86 processors with Nvidia’s AI accelerators, positioning them to compete directly in the high-performance computing market.
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CEO Tan’s Strategy Gains Crucial Validation
For CEO Lip-Bu Tan, who assumed leadership in March 2025, these deals represent a powerful endorsement of his rigorous restructuring plan. His strategy, which has included workforce reductions and the divestiture of non-core business units, appears to be yielding results. This operational shift is being bolstered by new products; at CES 2026 over the weekend, Intel unveiled its “Core Ultra Series 3” processors, designed to restore the company’s competitive edge in energy efficiency.
The combined effect of a strategic industry partner and substantial government backing has virtually eliminated the bankruptcy risk that weighed heavily on the stock throughout 2024 and early 2025. Investor sentiment has turned decidedly euphoric, with the share price recovering from its 52-week low of $16.61 and more than doubling that low point.
The Road Ahead: Financials and Roadmaps
Investors now have a key date circled on their calendars: the release of Intel’s fourth-quarter earnings report scheduled for late January 2026. This presentation will require management to detail, for the first time, how the capital infusion from Nvidia impacts the company’s annual forecast. In the interim, further announcements from the ongoing CES in Las Vegas—particularly regarding the development roadmap for the “Nova Lake” architecture—are likely to influence the stock’s near-term trajectory.
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