Intel's 98% Stock Surge Signals Chip Giant's Major Comeback

Intel is roaring back to life after years of falling behind rivals like Nvidia and Qualcomm, and Wall Street is taking notice with shares up 98% from last year.

The California chipmaker just unveiled its Core Ultra Series 3 processor, which will power over 200 new laptop designs hitting shelves this year. But CEO Lip-Bu Tan, who took the helm last March, has bigger plans than just dominating the PC market where Intel still holds a commanding 71% share.

The real excitement centers on where else these chips will go. Intel is pushing into robotics, landing a major win with Oversonic Robotics switching from Nvidia processors to power its healthcare robots. The Intel chips process requests faster and cost less because they don't need constant cloud connections.

"The devices between PCs and the cloud are almost infinite," said Jim Johnson, head of Intel's client computing group, at the CES tech conference in Las Vegas. He sees robots as the next frontier for AI growth beyond traditional computers.

The turnaround comes with powerful backing. The U.S. government now owns roughly 10% of Intel after a historic investment, with President Trump calling the company a source of pride and reiterating his commitment to bringing chip manufacturing back to America.

Intel faced serious headwinds over the past decade. Apple abandoned Intel chips for its MacBooks in 2020, preferring its own processors. The company cut 15% of its workforce last year, and shares had dropped more than 18% over five years before the recent surge.

Tan is moving fast to fix past strategic mistakes. He's told his executives to text him directly when customers are unhappy, creating a direct feedback loop to catch problems early. That hands-on approach seems to be working.

The new chips deliver what PC buyers actually want: better battery life, improved performance for AI tools like coding assistants, and sharper video calls on apps like Zoom. They're designed for the way people actually use AI today, not some distant future vision.

Competition remains fierce. AMD announced chips at CES that can run larger AI models directly on laptops without cloud processing. Qualcomm claims its new laptop chip offers multi-day battery life optimized for AI tasks.

The robotics bet carries risks too. Market research firm Gartner notes that humanoid robot deployments remain scarce, with technical and physical limitations still making them impractical for widespread use.

But momentum is clearly shifting back toward Intel. The combination of improved technology, government support, and focused leadership under Tan is giving investors and customers renewed confidence in the once-dominant chipmaker.

"I see Intel getting back in shape like it used to be," Johnson said, capturing the optimism now flowing through the company's headquarters in Santa Clara.