Intel Stock Up 225% YTD on Foundry Wins, AI Revenue Surge

Intel (INTC) shares have surged 224.77% year-to-date, making it one of the best-performing stocks in the semiconductor space. The rally is fueled by the company's foundry wins, including partnerships with NVIDIA and Google, and strong growth in its Data Center and AI segment. In the first quarter, Data Center and AI revenue jumped 22% year-over-year to $5.05 billion, while Intel Foundry revenue climbed 16% to $5.42 billion. This performance reflects Intel's strategic pivot under CEO Pat Gelsinger, who has emphasized manufacturing leadership and external foundry services to compete with TSMC and Samsung.

For traders, Intel's turnaround story hinges on the narrowing of foundry losses as its 18A manufacturing process scales. The 18A node, which uses advanced transistor technology like RibbonFET and PowerVia, is expected to be a key differentiator in the foundry market. The company's ability to secure additional major external foundry customers beyond NVIDIA and Google will be critical. The Data Center and AI segment's compounding growth above 20% year-over-year is a key driver to watch, as AI workloads increasingly demand Intel's Xeon processors and Gaudi accelerators. For current pricing on Intel and other semiconductor stocks, check NowPrice's equities page.

Looking ahead, Intel's path to $200 per share by 2028 depends on execution. Key milestones include the ramp of 18A manufacturing, further foundry customer wins, and sustained AI revenue growth. Investors should monitor quarterly earnings for updates on foundry margins and Data Center trends, as well as any announcements regarding new partnerships or government funding from the CHIPS Act. The competitive landscape, including AMD's and NVIDIA's moves, will also influence Intel's trajectory. Ultimately, Intel's ability to deliver on its foundry ambitions and capitalize on the AI boom will determine whether the stock can reach that price target.