Chipzilla is back: Intel stock soars over 50% in a Month amid investment flood and Foundry ambitions

Intel Corporation has experienced a spectacular resurgence, with its stock price surging by more than 50% in the last 30 days. The rally, which has seen the stock nearly double since its lows earlier in 2025, is being driven by a confluence of massive strategic investments, a leadership change, and growing optimism for the chipmaker’s ambitious manufacturing strategy.

As of early October 2025, the stock is trading near its 52-week high, signaling a dramatic shift in investor sentiment toward the struggling semiconductor giant.

The catalysts behind the 50% jump

Intel's remarkable momentum stems from a series of high-profile financial and strategic moves designed to revitalize the company and position it as a critical player in the AI era:

These include:

• U.S. government stake: The Trump administration’s $8.9 billion investment, which granted the government a controversial 10% equity stake, has seen its value balloon to an estimated $16 billion due to the stock surge. The investment is part of a broader push to promote domestic chip manufacturing

• NVIDIA partnership & investment: Rival chip giant NVIDIA reportedly invested $5 billion in Intel and forged a partnership to co-develop custom x86 CPUs for AI infrastructure

• SoftBank capital infusion: Japanese conglomerate SoftBank also took a significant $2 billion equity stake, offering a major validation of Intel's turnaround potential

• Foundry Service Ambition: The cornerstone of Intel’s resurgence is the optimism surrounding its Intel Foundry Services (IFS) initiative. The company’s long-term plan (IDM 2.0) is to reclaim its lead in process technology and expand its contract chipmaking business, which is currently dominated by Taiwan Semiconductor Manufacturing Co. (TSM)

• Talks with AMD: News that Intel is in early discussions with its long-time rival, Advanced Micro Devices (AMD), to potentially manufacture some of its chips has electrified the market. Such a deal would signal a monumental strategic victory for IFS

• Confirmed customers: Microsoft, Amazon, and the U.S. Department of Defense have all been confirmed as customers for Intel's advanced 18A process node, slated for volume manufacturing in late 2025.

• The Road ahead: Caution amid the rally

• While the stock's performance has been spectacular, analysts urge caution. The surge is largely based on future optimism and the influx of cash, rather than current financial performance; the company is still navigating negative free cash flow and net losses.

The debate among investors now centers on whether the share price, currently trading in the mid-$30s, already reflects the anticipated turnaround, or if Intel's strategic shift into a formidable foundry business will deliver further, long-term gains.