Intel stock surges 114%, doubles investor wealth in April
What's the story
Intel has witnessed an unprecedented surge in its stock price, with a whopping 114% increase in April. This marks the company's best month since it went public on the NASDAQ nearly 55 years ago. The rally is part of a larger turnaround strategy after years of delays and disappointing yields, which had seen Intel lag behind competitors like Taiwan Semiconductor Manufacturing Company (TSMC) and NVIDIA in the AI race.
Market response
Surge in demand for Intel's CPUs
The market seems to be responding positively to Intel's latest 18A chips, which are being produced at the company's new Arizona plant. The rise in demand is also being fueled by a resurgence of agentic AI, driving up the demand for Intel's core product—the central processing unit (CPU). Bank of America predicts that the CPU market could more than double by 2030, with NVIDIA noting in March that "CPUs are becoming the bottleneck" for AI.
Leadership perspective
Intel CEO Lip-Bu Tan's insights on CPU demand
Intel's CEO Lip-Bu Tan emphasized the rising demand for CPUs on the company's earnings call last week. He said that "the CPU is reinserting itself as the indispensable foundation of the AI era," and added that demand for its data center CPU exceeds supply. Tan took over as CEO in March 2025, after Intel had a rough patch under Pat Gelsinger's leadership with a 60% stock crash in 2024.
Financial rebound
Stock performance under Tan's leadership
Despite a rough patch, Intel's stock has almost quintupled (fivefold) since Tan took over, pushing its market cap past $470 billion. The company's revenue in the latest quarter rose by over 7% after five declines in the last seven periods. This growth is mainly driven by high demand from major hyperscaler customers like Google, Microsoft, and Amazon as well as equipment manufacturers such as Dell, HP, and Lenovo.
Government support
US government's investment in Intel boosts stock performance
The stock rally was also fueled by the US government's investment in Intel. In August, the US government took a 10% stake in the company, becoming its largest shareholder. The Trump administration's $8.9 billion investment largely comes from grants promised under the CHIPS Act signed by President Joe Biden in 2022. This stake is now worth over $40 billion, further boosting Intel's financial standing and stock performance.
Industry standing
Foundry business model and future challenges for Intel
Intel is the only US-based chipmaker that can manufacture the most advanced microchips needed for AI, alongside industry leaders TSMC and Samsung. Despite facing challenges, Intel has remained committed to its foundry business model—designing and manufacturing its own chips. However, it is still the only major customer of its foundry as other TSMC customers are yet to make the leap.