The Pieces Fall Into Place For Intel – Here's Why It's The Stock To Buy In 2026

Investors who track the semiconductor wars know how fast the script can flip. For years Intel (INTC) looked like the fading giant while Nvidia (NVDA), Taiwan Semiconductor Manufacturing (TSM), and Advanced Micro Devices (AMD) grabbed the AI spotlight. Now, the pendulum has swung back in Intel''s favor.

In just a matter of weeks, it has cobbled together a mix of big wins that sets the tone for the future. Intel:

• Joined Elon Musk''s $25 billion Terafab project alongside Tesla (TSLA), SpaceX, and xAI.

• Signed a multiyear collaboration with Google (GOOGL) on advanced packaging and server CPUs.

• Is also in advanced talks with Amazon (AMZN) for similar services.

• Posted robust Q1 results that prove the momentum is real.

Let''s see what the numbers actually tell us.

Intel''s Foundry Gains Traction

On April 7, Intel announced it would supply its 14A and 18A process nodes to Terafab, Musk''s $25 billion push for one terawatt of AI compute a year. Musk himself called 14A "state-of-the-art" and said it would be ready when Terafab scales.

Days later Intel locked in a multiyear pact with Google for Xeon processors, IPUs, and custom ASICs – contracts that typically run three to five years. The company is also in active talks with Amazon for advanced packaging services, and hyperscalers including Meta Platforms (META) are watching closely.

That shows Intel''s foundry business – once an afterthought – now has credible big-tech customers. Intel Foundry revenue hit $5.4 billion in Q1, up 20% sequentially. External foundry revenue alone reached $174 million. These wins stack Intel against TSM, which still dominates but now faces a U.S.-focused rival with government backing.

Earnings and Guidance Crush Expectations

On Thursday, Intel reported revenue of $13.6 billion, up 7% year-over-year, beating consensus estimates of roughly $12.4 billion. Adjusted EPS came in at $0.29 versus the $0.02 Wall Street expected – a 1,350% surprise. Data Center and AI revenue jumped 22% to $5.1 billion while non-GAAP net income reached $1.5 billion.

For Q2, management guided revenue between $13.8 billion and $14.8 billion – well above the $13.1 billion consensus. That marks the sixth straight quarter of beating internal targets. CEO Lip-Bu Tan noted on the earnings call that "a year ago the conversation was about survival. Today it''s about how quickly we can add capacity."

Intel''s Safety Net

The Pentagon unveiled its fiscal 2027 budget request last week totaling $1.5 trillion – the largest in history. Intel remains a key supplier of trusted U.S. military microelectronics. The government holds roughly a 9.9% stake in the company – some 433 million shares acquired at $20.47 per share – valued at about $29 billion, a three-fold increase.

That stake, combined with Trump-era investments that accelerated Intel''s turnaround, gives the company a structural edge few peers enjoy. Granted, chip cycles are volatile and competition from TSM and AMD won''t vanish. Yet the combination of commercial wins, earnings beats, and national-security tailwinds changes the risk profile.

Bottom Line

Intel has gone from also-ran to frontrunner in under a year. The Terafab partnership, Google contract, Amazon packaging talks, blowout Q1 results, and $1.5 trillion defense backdrop are not hype. They''re real wins.

For retail investors who want exposure to AI infrastructure without betting the farm on one hyperscaler, INTC now offers a data-rich case for a long-term position. The pieces are finally falling into place.