Intel Shares Surge 14% Amid Optimism Over PC Chip Rebound, Despite Long Road Ahead

Intel's shares climbed 14% in midday trading on January 9, 2026, after the company reported a 22% year-over-year increase in revenue from its PC client computing segment during the fourth quarter of 2025. This marks the third consecutive quarter of growth for the division, which had seen declining sales since 2021. The improvement was attributed to higher adoption of Intel's 14th-generation Core processors, particularly in premium laptops and gaming systems. Despite the positive momentum, analysts emphasize that the gains are not indicative of a full-scale turnaround. Intel’s overall revenue for 2025 remained flat at $63.8 billion, with the PC segment contributing just 38% of total sales—down from 52% in 2021. The company’s advanced process technology, including its 18A node, is still behind schedule, with mass production expected no earlier than late 2027, according to internal guidance. Investors appear to be pricing in a near-term rebound in PC demand, driven by enterprise upgrades and a resurgence in gaming hardware. However, competitive pressures persist, with AMD’s Ryzen 8000 series capturing 27% of the high-performance desktop market in Q4 2025, up from 19% a year prior. Apple’s M-series chips continue to dominate the premium laptop segment, holding 41% market share by unit volume. The stock’s rally has drawn attention from institutional investors, with the number of analyst upgrades to 'buy' increasing from 12 to 21 in the past month. Yet, long-term ratings remain cautious, with the average 12-month price target for Intel stock at $48.50, indicating limited upside beyond current levels.