Intel Turnaround Thesis Gains Momentum with Microsoft Order and Apple Talks
Intel's turnaround thesis has gained momentum thanks to its Data Centre and AI revenue growth of 22% in Q1 2026, reaching $5.1 billion. This internal validation is complemented by external validation from foundry customers Microsoft and Apple.
Microsoft has placed firm orders for Intel's 18A capacity, which represents a significant breakthrough for the company's foundry business. The yields on Panther Lake test chips built on Intel's 18A technology have reached 55% to 75%, making it competitive with TSMC. This achievement is crucial for Intel's foundry business, as customers commit years of chip designs based on expected yield performance.
Apple and Microsoft are considering Intel as a foundry partner over TSMC due to supply chain diversification, the ability to design and manufacture chips within the US, and ensuring a viable alternative to TSMC. This interest in Intel's 18A technology is driven by export control and supply chain security considerations.
Intel's stock price has broken out of its EMA50 at $110.63 on elevated volume, with an RSI between 51 and 61 indicating neutral-bullish sentiment. The next upside level targets $123.80, while the first target is $134, representing a resistance ceiling.