Intel's AI Comeback: CEO Reveals Insatiable CPU Demand As Customers Bulk Up Orders

Intel Corp (NASDAQ:INTC) CEO Lip-Bu Tan framed the company's turnaround around rebuilding data center leadership, winning foundry customers, and positioning Intel as a critical U.S. alternative to overseas chip manufacturing.

Intel Targets Data Center Comeback

Tan told CNBC's Jim Cramer on Tuesday that Intel once led the data center market but lost that position after product and execution mistakes. He said he is simplifying Intel's roadmap, bringing engineering closer to customers, and rebuilding talent to restore competitiveness.

Tan also said AI inference is increasing CPU demand as customers need more processors to manage orchestration, agents, and reinforcement learning.

He noted that one customer wanted to triple its CPU forecast, but Intel needs several quarters to catch up.

Google, SambaNova And Customers Shape Strategy

Tan described Alphabet Inc (NASDAQ:GOOGL) Google, as an important partner and said Intel wants to work with "winners" by helping customers succeed.

He also highlighted Intel's partnership with SambaNova, saying Intel's XPU, combined with SambaNova's data-flow architecture, can deliver better performance and lower power consumption.

Foundry And TSMC Rivalry Drive Value

Tan called Intel's foundry business a strategic national asset because more than 90% of advanced processors are made outside the U.S.

He said Intel improved 18A yields and is seeing monthly progress of 7% to 8%, helping attract outside customer interest.

Tan declined to name Apple Inc (NASDAQ:AAPL) but said multiple customers are working with Intel.

Looking ahead, Tan said Intel's 14A process could reach risk production in 2028 and volume production in 2029, putting Intel on a timeline he believes can compete with Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM).

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the July 23, 2026 (estimated) earnings report.

• EPS Estimate: 19 cents (Up from Loss of 10 cents YoY)
• Revenue Estimate: $14.40 Billion (Up from $12.86 Billion YoY)

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $77.65. Recent analyst moves include:

• Citigroup: Buy (Raises Target to $130.00) (May 18)
• Benchmark: Buy (Raises Target to $140.00) (May 18)
• Mizuho: Neutral (Raises Target to $124.00) (May 12)

INTC Price Action: Intel shares were down 0.72% at $107.39 during premarket trading on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock