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Intel is staging a comeback. Today’s 11% pre-market surge, sparked by Lip-Bu Tan’s appointment as CEO, is just the opening act. The real intrigue lies in hushed rumors of a blockbuster AI chip partnership—a potential game-changer to wrest market share from Nvidia’s iron grip. After years of stumbles, Intel’s $31 billion market cap looks poised for a rerating.

Tan, a semiconductor veteran, steps in as Intel battles a 60% stock slide from its 2020 peak. His track record at Cadence and deep industry ties signal a strategic pivot, and the market’s buying it—shares hit $32 today, a 15-month high. But the buzz stealing headlines is an unconfirmed AI chip deal. Speculation points to a tie-up with a hyperscaler—think Amazon or Google—to co-develop next-gen AI silicon, a lifeline to counter Nvidia’s 80% data center GPU dominance.

If true, this could catapult Intel past $35 by Q2, with analysts eyeing a 20-25% upside if production ramps up by 2026. The partnership whispers align with Intel’s $10 billion cost-cutting plan, hinting at a leaner, AI-focused giant. Risks linger—execution missteps or Nvidia’s counterpunch could stall momentum—but the CEO shakeup and AI chatter have flipped the narrative.

Today’s rally isn’t just hype. Intel’s foundry ambitions and AI push could shrink Nvidia’s lead, especially if tariff-driven supply chain chaos boosts domestic chip demand. Investors are betting on a revival, but the proof lies in the silicon. Watch for deal confirmation—Intel’s next chapter is taking shape, and it’s aiming high.

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