<p><strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-red-900">0.31%</span>)</span> was one of the earliest beneficiaries of the accelerating adoption of AI, supplying the graphics processing units (GPUs) that underpin the technology. The company has ridden its dominance in the space to a $5 trillion market cap, and its growth continues to accelerate.</p><p></p><p>Investors have been looking for the next generation of AI winners, hoping to get in on the ground floor and ride them to new heights. One of the biggest winners of 2026 thus far is <strong>Intel</strong> <span class="ticker-mention inline-flex items-center font-bold">(INTC <span class="ml-1 text-green-900">+4.23%</span>)</span>, which has soared 483% since the year began (as I write this) and shows no signs of slowing.</p><p></p><p>One Wall Street analyst has made a bold prediction, suggesting Intel will eventually join Nvidia in the $5 trillion club. Let's take a look to see what it would take to get there. </p>

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<img alt="The Intel logo superimposed over a picture of the company's headquarters." width="880" height="587" class="h-auto max-w-full rounded object-contain" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2Nkbi5jb250ZW50LmZvb2xjZG4uY29tL2ltYWdlcy8xdW1uOXFlaC9wcm9kdWN0aW9uL2M3OWE2YmEyMjEzNWJmNDA3YmJlYmNjNzMyZTY4NzI0Y2M3YjRjZTEtMTIwMHg4MDAucG5nP3c9MTIwMCZoPTgwMCZxPTc1JmF1dG89Zm9ybWF0Jnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2Nkbi5jb250ZW50LmZvb2xjZG4uY29tL2ltYWdlcy8xdW1uOXFlaC9wcm9kdWN0aW9uL2M3OWE2YmEyMjEzNWJmNDA3YmJlYmNjNzMyZTY4NzI0Y2M3YjRjZTEtMTIwMHg4MDAucG5nP3c9MTIwMCZoPTgwMCZxPTc1JmF1dG89Zm9ybWF0Jnc9Mzg0MA"/>
<p style="color: #666">Image source: The Motley Fool.</p>
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</div><p></p><h2 id="a-long-awaited-turnaround">A long-awaited turnaround</h2><p></p><p>Intel likely needs no introduction. The company's x86 CPU became the industry standard for personal computers, and its &#34;Intel Inside&#34; marketing campaign established the company as a household name. Unfortunately, Intel missed the shift to mobile and has faced increasing competition in the CPU market. Moreover, the dominance of GPUs in AI processing further relegated the company to near obscurity.</p><div class="my-8 lg:hidden"><div id="foolcom_sidebar_top_container" class="pitch-container"><div><div class="min-h-[350px] rounded border border-gray-200 bg-white p-4 shadow-sm"><div class="mb-3 h-4 w-2/3 rounded bg-gray-200"></div><div class="mb-2 h-3 w-full rounded bg-gray-100"></div><div class="h-3 w-5/6 rounded bg-gray-100"></div></div></div><div></div></div></div><p></p><p>However, Lip-Bu Tan took the helm as Intel’s CEO in early 2025, and the company embarked on a new strategic direction. The chief executive streamlined the organization to focus on Intel's foundry operations, revitalize its x86 business, and concentrate its efforts on AI -- and that strategy appears to be paying off.</p><div class="mb-8 flex justify-center"></div><p></p><p>Intel has reportedly reached a preliminary agreement with <strong>Apple t</strong>o fabricate some of the chips used in its flagship devices. <strong>Alphabet</strong> has placed an order with Intel for 3 million of its custom Tensor Processing Units (TPUs) for 2028. Intel has also joined Elon Musk's Terafab project to create chips for <strong>SpaceX</strong>, xAI, and <strong>Tesla</strong>. Finally, Intel's most advanced chip -- the 18A-P -- has entered the early stages of production.</p><div><div id="in_line_article_pitch_container" class="pitch-container"><div><div class="my-32px p-40px relative mx-auto min-h-[660px] overflow-hidden rounded border border-gray-200 bg-gray-100 md:min-h-[300px]"><div class="border-b-1px pb-16px border-dotted border-gray-300"><div class="h-8 w-2/3 rounded bg-gray-200"></div></div><div class="mt-16px space-y-3"><div class="h-6 w-full rounded bg-gray-200"></div><div class="h-6 w-11/12 rounded bg-gray-200"></div><div class="h-12 w-48 rounded bg-gray-300"></div></div></div></div><div></div></div></div><p></p><p>These deals and others like them are beginning to show up in Intel's financial results. In the first quarter, revenue rose 7% year over year to $13.6 billion, while adjusted earnings per share (EPS) soared 123% to $ 0.29, though on a GAAP basis, Intel is still losing money. The company also generated more than $1 billion in operating cash flow. While there's still more work to do, Intel is obviously heading in the right direction. </p><p></p><h2 id="a-bold-prediction-from-wall-street">A bold prediction from Wall Street</h2><p></p><p>Is easy to see the vast potential looming for a reinvigorated Intel, but one Wall Street analyst is taking his bullish outlook to the next level. Global Equities Research analyst Trip Chowdhry maintains a buy rating and $200 price target on Intel. That suggests potential upside of 70% for investors over the coming year or so. However, it's the analyst's long-term outlook that's head-turning.</p><p></p><p>Chowdry argues that the same dynamics that drove Nvidia up more than 1,000% since early 2023 are now at play for Intel, as AI enters the next phase of implementation.</p><section><div class="flex flex-wrap place-content-between"><div class="flex w-full place-items-center lg:w-3/4"><div class="p-[8px] text-center" style="width: 95px"><small><div class="flex flex-col items-center gap-2">Expand</div></small></div><div class="py-4 pr-4"><img alt="Intel Stock Quote" width="64" height="64" class="w-full flex-none object-contain" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0lOVEMucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0lOVEMucG5nJnc9MTI4"/></div><div class="pr-[16px]"><h2>NASDAQ: INTC</h2><div class="text-md leading-[1] font-medium text-gray-800">Intel</div></div></div><div class="flex w-full place-items-center lg:w-1/4"><div class="h-full w-5/6 px-4 py-2.5 lg:text-right bg-green-200"><div class="mb-[2px] text-[10px] text-gray-800">Today's Change</div><div class="mb-6 text-[18px] leading-none font-medium text-green-900">(4.23%) $4.95</div><div class="mb-[2px] text-[10px] text-gray-800">Current Price</div><div class="text-gray-1100 text-[18px] leading-none font-medium">$122.00</div></div><div class="flex h-full w-1/6 items-center justify-center py-2.5 bg-green-900"></div></div></div><div class="flex flex-wrap overflow-hidden transition-all duration-300 h-0"><div class="w-full border-t border-gray-300 p-2 lg:w-3/4 lg:border-r lg:p-6"></div><div class="w-full p-2 lg:w-1/4 lg:p-4"><h3>Key Data Points</h3><div class="text-gray-1100 my-[14px] grid grid-cols-2 text-sm"><div class="border-b border-gray-300 py-[14px] text-gray-800">Market Cap</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">$588B</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Day's Range</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">$118.07 - $122.63</div><div class="border-b border-gray-300 py-[14px] text-gray-800">52wk Range</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">$18.96 - $132.75</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Volume</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">2.4M</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Avg Vol</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">129.7M</div><div class="border-b border-gray-300 py-[14px] text-gray-800">Gross Margin</div><div class="border-b border-gray-300 py-[14px] text-right font-bold">35.90%</div></div></div></div></section><p></p><p>Specifically, as AI moves from primarily training to inference and applications, the dynamics of the marketplace will shift. &#34;AI training is the past -- AI inference is the present -- AI applications are the future, i.e., GPUs are the past, CPUs are the future,&#34; he wrote. The analyst estimates that the AI inference and applications markets will be eight times the size of the AI training market, which is the linchpin of his investing thesis.</p><p></p><p>The analyst projects that Intel will generate earnings per share of $10 by 2030, which he says is conservative, and that its market cap will eventually reach $5 trillion. &#34;Intel is USA Crown Jewel, and Intel will be a $5 Trillion Company -- any AI processor, if it is not on Intel 18A, it has already lost,&#34; Chowdry wrote.</p><p></p><h2 id="is-he-right">Is he right?</h2><p></p><p>Intel is expected to generate EPS of $1.09 in 2026 and $1.55 in 2027, according to Wall Street's consensus estimates, and the stock is currently selling for 111 times forward earnings. If its forward price-to-earnings (P/E) ratio remains constant, EPS of $10 would push its share price to $1,100, up 848%, driving its market cap to $5.57 trillion.</p><p></p><p>While the math works, I take exception to the analyst's contention that any AI processor that's not the Intel 18A &#34;has already lost.&#34; If the AI boom has taught us anything, it's that there are many paths to success.</p><p></p><p>For example, while Nvidia's GPU was the first -- and still dominant -- AI processor, rivals are creating competitive GPUS, TPUs, and Application-Specific Integrated Circuits (ASICs), and all are finding some success. Many of these semiconductors have been designed to be more efficient for specific tasks.</p><p></p><p>Intel will likely find success in AI, but if its path to $5 trillion relies on it being the <em>only</em> winner, I simply don't buy it.</p><p></p><div id="article_pitch_container" class="pitch-container"><div><div class="mb-32px p-24px min-h-[1000px] bg-gray-100 md:min-h-[560px]"><div class="mb-8px h-10 w-60 rounded bg-gray-200"></div><div class="mb-16px h-8 w-48 rounded bg-gray-200"></div><div class="mb-2 h-4 w-full rounded bg-gray-200"></div><div class="mb-2 h-4 w-5/6 rounded bg-gray-200"></div><div class="mb-2 h-4 w-4/6 rounded bg-gray-200"></div><div class="mt-16px h-12 w-44 rounded bg-gray-300"></div><div class="mt-20px h-3 w-3/4 rounded bg-gray-200"></div></div></div><div></div></div><div id="promobox_container" class="pitch-container"><div><div class="min-h-[570px] rounded border border-gray-200 bg-gray-100 p-4 md:min-h-[350px]"><div class="mb-3 h-4 w-2/3 rounded bg-gray-200"></div><div class="mb-2 h-3 w-full rounded bg-gray-100"></div><div class="mb-2 h-3 w-5/6 rounded bg-gray-100"></div><div class="mt-6 h-28 w-full rounded bg-gray-200"></div></div></div><div></div></div>

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<p>Wall Street analyst Trip Chowdhry predicts Intel could reach a $5 trillion market cap, driven by AI inference and application growth. While Intel's stock has surged 483% in 2026 due to strategic turnaround efforts under CEO Lip-Bu Tan, including new foundry deals with Apple and Alphabet, the prediction remains highly speculative. Current consensus estimates suggest much lower EPS figures for 2026-2027, making the $1,100 share price target ambitious given the current valuation.</p>

- Nvidia has greatly benefited from the AI boom, reaching a $5 trillion market cap, while Intel has surged 483% in 2026, led by a new strategic vision under CEO Lip-Bu Tan.  
- Intel's recent deals, including agreements with Apple and Alphabet, along with its advanced chip production, indicate a positive financial trajectory as revenues rose 7% and adjusted EPS increased 123%.  
- A Wall Street analyst predicts Intel could match Nvidia’s market cap, citing AI inference's growth, although the view that Intel will be the sole victor in AI processing might be overly optimistic.

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1 Unstoppable Stock to Buy Before it Soars 848% to Join Nvidia in the $5 Trillion Club, According to 1 Wall Street Analyst