Intel's comeback story is getting a lot more interesting. CEO Lip-Bu Tan sat down with CNBC's Jim Cramer on Tuesday and painted a picture of a company that's not just trying to survive—it's trying to reclaim its old throne in data centers, win over foundry customers, and position itself as America's chip-making champion.
Tan didn't mince words about where Intel went wrong. "We used to have leadership in data center. We lost that," he said, blaming product and execution mistakes. His fix? Simplify the roadmap, bring engineering closer to customers, and rebuild talent. It's a classic turnaround playbook, but the details matter.
One of the most striking moments came when Tan revealed just how hot CPU demand is right now. AI inference, he explained, is driving a surge in demand for processors to handle orchestration, agents, and reinforcement learning. One customer, he said, wanted to triple its CPU forecast. The catch: Intel needs "several quarters" to catch up. That's a good problem to have, but it's still a problem.
Tan also highlighted key partnerships. He called Alphabet Inc. (GOOGL) Google an important partner and said Intel wants to work with "winners." He also talked up the collaboration with SambaNova, claiming Intel's XPU combined with SambaNova's data-flow architecture delivers better performance and lower power consumption.
Then there's the foundry business—the part of Intel that could reshape the global chip landscape. Tan called it a "strategic national asset," noting that more than 90% of advanced processors are made outside the U.S. He said Intel's 18A node yields are improving 7% to 8% every month, which is helping attract outside customers. He wouldn't name names, but he said multiple customers are working with Intel—and that likely includes Apple Inc. (AAPL), though Tan didn't confirm it.
Looking further ahead, Tan laid out a timeline that could put Intel back in the race with Taiwan Semiconductor Manufacturing Company Ltd (TSM). Intel's 14A process is on track for risk production in 2028 and volume production in 2029. That's the kind of long-term bet that could pay off big—if Intel executes.
For investors, the next big catalyst is the July 23, 2026 earnings report. Analysts expect EPS of 19 cents (up from a loss of 10 cents a year ago) and revenue of $14.40 billion (up from $12.86 billion). The stock carries a Hold rating with an average price target of $77.65, but recent analyst moves suggest growing optimism. Citigroup raised its target to $130 on May 18, Benchmark to $140 on the same day, and Mizuho to $124 on May 12.
Intel shares were down 0.72% at $107.39 in premarket trading on Tuesday. Not a huge move, but with a CEO who's talking about tripling orders and taking on TSMC, the story is far from over.
