Intel Corporation (NASDAQ: INTC) shares closed at $43.63 on Monday, February 23, 2026, down 1.09% from the previous session's $44.11 finish, but the stock showed resilience in pre-market trading Tuesday, February 24, climbing about 1.4% to around $44.24 after news of a multi-year technical partnership with AI chip startup SambaNova Systems.

Executives at Silicon Valley chip maker Intel say 'fluid' US trade policies and regulatory moves have increased the chances of economic slowdown
Intel AFP

The modest decline capped a volatile period for the semiconductor giant, which has traded in a 52-week range of $17.67 to $54.60. Year-to-date in 2026, INTC is up roughly 18-20% from late-2025 levels, reflecting cautious optimism about new CEO Lip-Bu Tan's turnaround efforts, though the stock remains well below its 2021 peak and faces persistent valuation and execution questions.

Intel's market capitalization stands at approximately $217-220 billion, supported by a cash position and CHIPS Act funding but weighed down by ongoing foundry losses and competitive pressures in AI and data center chips. Trading volume on February 23 reached about 57 million shares, near average for the name.

The latest catalyst came Tuesday when Intel announced it is participating in SambaNova's $350 million Series E funding round and entering a multi-year technical collaboration. SambaNova, a maker of generative AI chips, will adopt Intel server processors and graphics cards for its systems, while Intel gains exposure to advanced AI workloads. The deal follows reports of failed acquisition talks between the companies and underscores Intel's push to strengthen its AI ecosystem amid dominance by Nvidia and competition from AMD.

CEO Lip-Bu Tan, who took the helm in late 2025, has emphasized partnerships and ecosystem building as part of Intel's recovery strategy. The SambaNova tie-up provides a positive signal, but analysts note it is incremental rather than transformative given Intel's broader challenges in foundry profitability and AI market share.

Recent performance has been choppy. After rallying to the mid-$50s in January 2026 on optimism around Tan's leadership and foundry progress, shares pulled back sharply following weaker-than-expected Q1 2026 guidance in early February. The company projected Q1 revenue of $11.7 billion to $12.7 billion, below some estimates, reflecting supply constraints and soft PC demand.

Full-year 2025 results (reported earlier) showed revenue growth but persistent foundry losses exceeding $2.5 billion annually. Management targets foundry breakeven by 2027-2028, with customer commitments for the 14A process expected in the second half of 2026. An Analyst Day planned for Santa Clara in H2 2026 will detail how AI infrastructure spending translates to shareholder returns.

Analyst views remain divided. Consensus rating is Hold to Moderate Buy, with an average 12-month price target around $45-48 (implying limited upside from current levels). Recent notes include caution over Nova Lake CPU delays (now pushed beyond CES 2027) and Meta's shift toward Nvidia for some CPU workloads, potentially pressuring Intel's data center position. However, bulls highlight undervaluation, government support, and potential upside from foundry ramps and AI partnerships.

Institutional activity shows mixed flows: some funds increased stakes, while others trimmed amid uncertainty. Insider buying by executives has been modest but positive.

Looking ahead, the next major update is Q1 2026 earnings (expected late April), where investors will seek clarity on foundry progress, AI GPU traction (including Gaudi and upcoming Falcon Shores), and any new customer wins. The stock's trajectory depends on execution against ambitious goals in a highly competitive landscape.

For now, Intel remains a high-risk, high-reward turnaround story. Its cash position and strategic shifts provide a foundation, but near-term volatility persists as the market weighs AI spending sustainability, foundry profitability, and competition from Nvidia, AMD, and custom silicon players.