--- title: "Two Years Ago It Was a \"Life-or-Death Issue\"; Now Intel's Stock Hits ATH—What Did Lip Bu Tan Get Right?" type: "News" locale: "en" url: "https://longbridge.com/en/news/284177485.md" description: "From being publicly called out by Trump to resign, to impressing him in a single meeting and facilitating the U.S. government's Equity Acquisition of a 10% stake in Intel—a deal investors view as a vital lifeline for the company. Within just a few months of becoming CEO, Lip Bu Tan orchestrated this stunning reversal. Since then, he has seized the opportunity of the \"CPU Renaissance\" brought about by agentic AI, driving a 500 basis point increase in operating margin, with the 14A process node receiving endorsement from Tesla. Intel has moved from the \"brink of survival\" back to center stage" datetime: "2026-04-27T08:34:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284177485.md) - [en](https://longbridge.com/en/news/284177485.md) - [zh-HK](https://longbridge.com/zh-HK/news/284177485.md) --- # Two Years Ago It Was a "Life-or-Death Issue"; Now Intel's Stock Hits ATH—What Did Lip Bu Tan Get Right? Two years ago, Intel faced a "life-or-death issue"; today, the chip giant's stock price has reached historic highs, proving its recovery potential to the market with earnings far exceeding expectations and record-breaking stock gains. Last Friday, Intel's stock surged 28% at one point, marking its largest single-day gain since 1987, before closing up approximately 21%, breaking through the historic highs seen during the internet bubble era. The direct driver of this stock rally was the Q1 earnings report: revenue of $13.6 billion, beating analyst expectations of $12.4 billion by about 9.3%. Adjusted EPS was $0.29, against an expectation of $0.01. The midpoint of Q2 revenue guidance was $14.3 billion, compared to an expectation of $13.1 billion. **All three core metrics significantly exceeded expectations, driven by robust demand for server CPUs fueled by the rapid adoption of agentic AI applications.** John Pitzer, Intel's Vice President of Investor Relations, described this performance as "strong evidence of tangible progress in execution." Jay Goldberg, an analyst at Seaport Research, pointed out that Intel is currently on "its most solid foundation in years." From a "life-or-death issue" to historic highs, **the core of this reversal lies in CEO Lip Bu Tan seizing the opportunities brought by the structural shift in AI application forms.** The market's next focus will be on whether the 14A process node can deliver on its promises and whether the foundry business can establish a sustainable customer base. ## How Did Intel Fall Into a Life-or-Death Crisis? Two years ago, Intel's situation was far more critical than outsiders realized. Goldberg stated bluntly that Intel's survival was "a life-or-death issue," and that the company had "completely lost its way" technologically. In Goldberg's view, one of Intel's most fatal mistakes was **failing to introduce Extreme Ultraviolet (EUV) lithography equipment in a timely manner like TSMC did—a core tool for manufacturing advanced chips.** At that time, TSMC had already surpassed Intel in chip manufacturing and was producing chips for Intel's main CPU competitor, Advanced Micro Devices (AMD). During the tenure of former Intel CEO Pat Gelsinger, he vigorously promoted the revitalization of domestic manufacturing in the United States, leading an investment plan of over $100 billion in Arizona, New Mexico, Oregon, and Ohio, making Intel the biggest beneficiary of the Biden administration's CHIPS and Science Act. However, Goldberg noted that Gelsinger failed to effectively cut costs or improve corporate culture to motivate employees, **and overly relied on short-term measures such as stock buybacks to boost share prices, sacrificing the company's long-term technological competitiveness to some extent.** ## Challenges Five Months Into the Tenure: A Political Storm Reversed In March 2025, Lip Bu Tan took over as Intel's CEO. Five months later, political pressure suddenly descended—Trump publicly named him on Truth Social, demanding his immediate resignation. Less than a week later, the situation reversed. Trump subsequently posted that he had a "very interesting" meeting with Lip Bu Tan. Afterward, **the U.S. government announced it would acquire a 10% equity stake in Intel, a deal investors viewed as a vital lifeline for the company.** Looking at the longer timeline, the changes implemented since Lip Bu Tan took office have begun to show results. John Pitzer, Intel's Vice President of Investor Relations, stated that the company's foundry capacity supply exceeded expectations and that closer collaboration mechanisms had been established with customers. ## "CPU Renaissance" and Process Breakthroughs: The Shift in AI Forms Reshapes the Market Landscape The core logic behind Intel's current rebound lies in the structural shift in AI application forms. Mark Lipacis, an analyst at Evercore ISI, referred to this trend in a research report as the **"CPU Renaissance"**—as AI agent tools rise, AI systems capable of autonomously completing complex tasks will significantly increase demand for CPUs, potentially reversing the previous CPU-to-GPU ratio from 1:8 to 8:1. Lipacis pointed out that **since Lip Bu Tan took over, Intel's operating margin has increased by 500 basis points, and its debt situation has also improved.** As a leading chip manufacturer, Intel's strategic value has become increasingly prominent against the backdrop of escalating geopolitical tensions. Ivan Feinseth, an analyst at Tigress Financial Partners, gave positive feedback on Lip Bu Tan's leadership, believing he is "exactly the kind of CEO Intel needs," and noted that **while continuing Gelsinger's strategic direction for the foundry business, Lip Bu Tan has achieved substantial improvements in execution.** Positive signals have also emerged in process technology. John Pitzer, Intel's Vice President of Investor Relations, stated that the cycle time and yield rates for the company's latest 18A process node were better than expected, and that customer negotiations for the next-generation 14A process node are "progressing very smoothly." Notably, Tesla CEO Elon Musk stated during this week's earnings conference call that **his Terafab chip manufacturing project will adopt Intel's 14A process, providing additional endorsement for the commercial prospects of this node.** Pitzer stated that Musk and Lip Bu Tan share similar judgments on promoting chip innovation and addressing the supply-demand gap driven by AI. ## After Intel Reaches the Top, What Is the Next Test? Although Intel's recent performance has energized the market, analysts remain cautious about its long-term prospects. Goldberg pointed out in a research report that Intel has "basically escaped danger in terms of medium-term survival," **but the viability of the foundry business remains undecided. Whether it can attract enough external customers will be the key variable determining whether Intel can return to the forefront of chip manufacturing.** Intel's story is far from over. While hitting ATH in stock price boosts confidence, the market's final verdict will depend on whether the 14A process node can deliver on its promises and whether the foundry business can truly establish a sustainable customer base. ### Related Stocks - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [04335.HK](https://longbridge.com/en/quote/04335.HK.md) - [INTW.US](https://longbridge.com/en/quote/INTW.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) ## Related News & Research - [Intel Earnings Confirm CPU Demand Is Outpacing Supply, But Does the Company Really Have an Edge?](https://longbridge.com/en/news/284086473.md) - ['More Upside Ahead': Intel Stock (INTC) Wins a New Street-High Price Target](https://longbridge.com/en/news/284124817.md) - [BUZZ-Street View: AI demand boosts Intel, but capacity limits loom](https://longbridge.com/en/news/283982891.md) - [Intel's stock extends its spectacular run - and could see its best daily gain on record](https://longbridge.com/en/news/283999281.md) - [Intel Will Report Q1 Earnings Tomorrow. 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