Intel Corporation’s INTC shares rose 1.7% on Tuesday, Dec. 30, amid broader market weakness, as investors responded to the completion of a high-profile investment that has been a defining theme for the chipmaker this year. The stock’s rise on this day was driven by the recent finalization of NVIDIA Corporation’s NVDA $5 billion purchase of Intel shares. This deal catalyzed renewed confidence in Intel’s turnaround narrative and underscored deepening industry collaboration.
Intel, part of the Zacks Semiconductor - General industry, has had a transformative yet turbulent year. After years of lagging behind competitors in key growth areas such as AI accelerators and advanced manufacturing, the company’s stock performance reflected its challenging journey. Earlier in the year, Intel’s shares traded near multi-year lows as weaknesses in its core businesses and prolonged manufacturing delays weighed on sentiment. At various points, the stock had significantly underperformed its semiconductor peers, with substantial declines due to operational headwinds and skepticism about its ability to regain a competitive footing.
The narrative began to shift as Intel secured multiple capital infusions and strategic partnerships that aimed to provide both financial stability and technological relevance. Among the most notable was the announcement in September that Nvidia would invest in Intel, acquiring roughly 4% of its equity.
Beyond the Nvidia deal, Intel also benefited from government support under the U.S. CHIPS Act and other funding commitments that bolstered its domestic manufacturing expansion. These developments were accompanied by progress in next-generation process technologies, including milestones toward competitive nodes and expanded foundry opportunities. Such catalysts, paired with cost discipline under new leadership, helped reshape investor expectations for the company’s long-term prospects.
INTC has risen 86% in 2025 and currently hovers around the $37 mark. It currently has a Zacks Rank #3 (Hold). Amtech Systems, Inc. ASYS, a peer from the same industry, and NVDA have risen 132% and 39.7%, respectively, in the year. The industry in general has gained 37.1%. Both NVDA and ASYS currently sport a #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bottom Line
As Intel heads into 2026, market attention remains focused on its ability to convert these strategic moves into tangible market share gains and sustainable growth, with the Nvidia alliance being one of the most closely watched elements of its evolving comeback story.
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Intel Corporation (INTC): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Amtech Systems, Inc. (ASYS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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