Intel gains Nvidia and SoftBank backing for AI push

Intel has drawn substantial equity investments from Nvidia and SoftBank, reinforcing the company’s push to revive its foundry business and expand its role in AI infrastructure. The backing follows an operational rebound under CEO Lip-Bu Tan and has helped shift market discussion away from Intel’s traditional PC and server chip identity toward AI processors and manufacturing partnerships.

Intel’s shares were at $120.33, up 205.6% year to date, despite a 9.4% decline over the past week. The stock also gained 11.5% over the past month and 137.4% over five years, underscoring strong momentum alongside recent volatility. Commentators including Jim Cramer and several analysts have highlighted Intel as an AI pick, citing IDM 2.0 execution and new AI chips.

Valuation remains a central risk. Intel trades at US$120.33, around 19% above the US$100.88 analyst consensus target, and Simply Wall St describes the stock as trading 88.0% above estimated fair value. Execution on foundry contracts, AI chip adoption, product ramps and durable partnerships will be key tests as investors assess whether new capital and attention translate into sustainable gains.