Intel Corp. shares gained ground Wednesday after the chipmaker announced a strategic collaboration with AI startup SambaNova Systems, bolstering its position in the fast-growing artificial intelligence market amid ongoing efforts to revitalize its foundry business and regain ground lost to rivals.

Intel (NASDAQ: INTC) closed at $46.88 on Feb. 25, up $0.76 or 1.65%, with high trading volume of over 75 million shares reflecting renewed investor interest. The stock has traded in a 52-week range of $17.67 to $54.60, recovering significantly from lows seen earlier in the period but still well below peaks from prior years. Pre-market activity on Feb. 26 showed minor fluctuations around $46.50 to $46.80.

The Intel logo is shown at E3, the world's largest video game industry convention in Los Angeles
The Intel logo is shown at E3

The latest momentum stems from Intel's partnership with SambaNova, revealed Feb. 24. The deal includes Intel investing in SambaNova's $350 million funding round led by Vista Equity Partners. SambaNova, known for its full-stack AI platforms optimized for large-scale inference and agentic AI, will collaborate with Intel on hardware and software integration. Reports indicated prior acquisition talks between the companies had faltered, leading to this partnership instead.

Analysts viewed the move positively as Intel seeks to expand beyond traditional PC and server chips into AI accelerators. SambaNova's announcement highlighted its new chip as the "fastest for agentic AI," with the Intel tie-up aimed at accelerating deployment in enterprise and cloud environments. The news helped lift Intel shares more than 5% intraday on Feb. 24 before settling with solid gains.

The partnership arrives as Intel continues implementing its turnaround strategy under new leadership. CEO Lip-Bu Tan, who took the helm in late 2025, has emphasized deepening AI capabilities, advancing foundry operations and improving execution across product lines.

Intel's most recent earnings, reported Jan. 22 for the fiscal fourth quarter ended Dec. 27, 2025, showed mixed results but beats on key metrics. Revenue came in at $13.7 billion, down 4% year over year but at the high end of company guidance and above Wall Street's $13.4 billion consensus. Non-GAAP earnings per share were $0.15, surpassing expectations of $0.08. Non-GAAP gross margin improved to 37.9%, about 140 basis points ahead of forecasts.

Full-year 2025 revenue was $52.9 billion, essentially flat compared to the prior year when adjusted for the deconsolidation of Altera in Q3. GAAP results reflected a net loss, with full-year EPS at -$0.06 and Q4 at -$0.12, driven by restructuring costs, investments in manufacturing and competitive pressures.

Despite the top-line softness, executives highlighted demand strength in AI-powered PCs, traditional servers, networking and emerging ASIC designs for specialized workloads. Supply constraints limited growth in some areas, but the company expressed confidence in aligning its CPU, GPU and platform strategies to capitalize on AI proliferation.

Intel's foundry ambitions remain central to its long-term narrative. Progress on advanced nodes like Intel 18A and upcoming 14A is viewed as critical for attracting external customers and reducing reliance on internal production. Challenges persist, including delays in process ramps and competition from Taiwan Semiconductor Manufacturing Co. and others. Recent reports noted concerns over potential risks to partners like Synopsys amid foundry uncertainties.

Broader market dynamics continue influencing Intel's trajectory. The company has lagged behind Nvidia's explosive AI-driven growth and faced share erosion in PCs to AMD. However, optimism around AI PCs—where Intel targets half of new systems being AI-enabled—has provided a tailwind. The stock has climbed roughly 90% over the past 12 months in some calculations, reflecting hopes for sustained recovery.

Wall Street sentiment remains cautious but improving. Many analysts rate Intel as a hold, with price targets varying widely amid debates over execution risks and valuation. The company's market capitalization hovers around $200 billion, a fraction of Nvidia's but signaling renewed credibility.

Intel has also pursued geographic expansion, including commitments in India to support semiconductor and AI ambitions there. Executives have stressed long-term dedication to such markets.

Looking ahead, investors await updates on product roadmaps, including next-generation processors and foundry milestones. Any acceleration in AI adoption or positive developments in manufacturing yields could provide further upside. Conversely, prolonged supply issues or intensified competition could pressure shares.

As the semiconductor industry evolves amid AI demand and geopolitical considerations, Intel's ability to execute its multifaceted strategy will determine whether recent gains prove durable.