TLDR
- Intel stock rose ~4.5% in premarket trading Wednesday after announcing its 18A-P chip process entered risk production
- The 18A-P node offers a 9% performance boost or 18% power reduction compared to the original 18A
- The new process is backward compatible with 18A design rules, lowering the barrier for foundry customers
- AI infrastructure demand helped Intel sell chips in Q1 that had previously been written off
- Intel recently partnered with Foxconn to develop AI server racks and next-gen data center solutions
Intel (INTC) stock climbed around 4.5% in premarket trading on Wednesday, hitting $121.10, after the company announced its 18A-P manufacturing process has entered the risk production stage.
Risk production is the step between development and full-scale manufacturing. It lets Intel test the process with real chipmakers before committing to volume output.
The 18A-P node delivers a 9% performance improvement over the original 18A at the same power level. Alternatively, it can cut power consumption by 18% while matching the original node’s processing speed.
One key detail for potential foundry customers: 18A-P uses the same design rules as 18A. That means existing chip designs and intellectual property can transfer over without a full redesign, which lowers the cost and time to switch.
The announcement also includes improvements to thermal management and design flexibility, two areas that matter as chip complexity increases.
AI Demand Fueling the Recovery
Intel has been leaning hard into AI as a growth driver. In Q1, demand for its processors from AI infrastructure builders was strong enough that Intel ended up shipping chips it had previously written off as unsellable inventory. That’s a notable reversal.
Earlier this month, Intel announced a partnership with Foxconn aimed at resolving infrastructure bottlenecks tied to the rapid growth of AI workloads. The two companies plan to develop server racks that combine Intel CPUs with its AI accelerator architecture.
The collaboration also covers faster interconnects, system monitoring tools, and improved cooling. Beyond data centers, the partnership targets robotics, autonomous vehicles, smart cities, and manufacturing applications.
Intel’s most recent quarterly results, reported April 23rd, showed earnings per share of $0.29, blowing past analyst estimates of $0.01. Revenue came in at $13.58 billion, above the $12.32 billion consensus, and up 7.4% year over year.
Analyst Ratings Still Mixed
Despite the positive momentum, Wall Street remains divided. The current consensus rating on INTC is “Hold,” with an average price target of $85.98 — well below Wednesday’s premarket price of $121.10.
Of the analysts covering the stock, 15 have a Buy rating, 27 are at Hold, and 4 recommend Sell. One analyst holds a Strong Buy.
On the institutional side, Siemens Fonds Invest GmbH increased its INTC position by 5.1% in Q4, and several smaller funds initiated new positions during the same period. Institutional investors now own 64.53% of the stock.
Intel opened Wednesday at $117.05. The 52-week range runs from $18.97 to $132.75. The stock’s 200-day moving average sits at $62.96, a sign of how sharply the price has moved in recent months.
For Q2 2026, Intel has guided for EPS of $0.20, with the full-year analyst consensus at $0.63.
New Street Research initiated coverage on June 11th with a Buy rating, one of the more recent additions to the analyst coverage list.
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