Intel bounces back after losing ground in the AI race

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The shares of Intel have surged by a quarter to reach a record high. It is a remarkable turnaround for a company fighting for survival a year ago. Intel once dominated semiconductor manufacturing, producing chips that powered the advent of personal computing. But it fell behind AI rivals, posting losses of $19bn in 2024 and losing roughly 60% of its market capitalisation in a year. Since then it has focused on cutting costs and filling global supply gaps. This includes making the microprocessors that grease the wheels of AI data centres. It has also received investments from Nvidia, Softbank and the US government, which sees the American chip manufacturer as vital to national security. Intel’s latest earnings report showed a substantial rise in revenues.