Intel Stock Gains Momentum with Nvidia Partnership Approval

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U.S. antitrust regulators have cleared a significant strategic move in the semiconductor industry. The Federal Trade Commission (FTC) has given its official approval, announced on December 19, for Nvidia’s planned $5 billion investment in Intel. This decision removes a major regulatory overhang from the partnership first unveiled in September and signals a vote of confidence in Intel’s manufacturing roadmap for the artificial intelligence era.

Investors responded favorably to the regulatory green light. Intel’s shares closed Friday’s trading session at €31.35, marking a gain of 1.33 percent. Trading activity was notably elevated, with volume significantly exceeding the average.

At its core, this agreement repositions Intel as a key manufacturing partner for Nvidia’s AI infrastructure. The collaboration will see Intel produce custom x86 CPUs for Nvidia, with both companies jointly developing System-on-Chips that integrate Nvidia’s GPU technology. This alliance provides not only a substantial financial infusion for Intel but also serves as a powerful validation of its foundry strategy and technological capabilities.

Manufacturing Resurgence and Financial Stability

Parallel to securing this partnership, Intel continues to make tangible progress in restoring its manufacturing leadership. The company’s Arizona facility is already producing chips using its advanced 18A process node at high volume. In a further technological leap, Intel has installed the first commercial High-NA EUV lithography system from ASML, laying the groundwork for future process generations.

These operational advancements were reflected in the firm’s most recent financial report. For the third quarter of 2025, Intel posted revenue of $13.7 billion, a 3 percent increase year-over-year, with adjusted earnings per share coming in at $0.23. These results demonstrated greater stability than many market observers had anticipated.

Divergent Views on Wall Street

Despite these positive developments, analyst sentiment remains divided. The current consensus recommendation still leans toward "Reduce," and price targets show an exceptionally wide dispersion, ranging from $18 to $54 per share. While Morgan Stanley recently raised its target to $36, institutions including Citigroup and Bank of America maintain a more cautious stance. For many on Wall Street, Intel’s narrative remains a "show-me" story, where consistent execution of its plans will be the ultimate determinant of long-term stock performance.

Adding a layer of speculative interest are unconfirmed reports from analyst Ming-Chi Kuo. These suggest Intel could potentially resume manufacturing chips for Apple’s MacBook Air and iPad Pro as early as the second quarter of 2027.

All eyes now turn to January 2026. The upcoming Consumer Electronics Show (CES) and the next set of quarterly earnings will serve as critical indicators for whether Intel’s ambitious technological catch-up is translating into sustainable financial success.