The tech giant is pivoting its strategy to focus on processors to support AI workloads, meaning less capacity for chips for PCs.

By Arsheeya Bajwa Jan 21 (Reuters) - Intel shareholders are optimistic about the company's results like they have not been for many quarters, betting the turnaround CEO Lip-Bu Tan promised was taking root and that rapid data center build outs were fueling strong demand for its traditional server chips.

Over the last year, Intel shares have rallied more than double on hopes of a turnaround for the embattled American chipmaker.

Intel ( INTC) is set to report earnings after the bell Thursday, and its financial results could either solidify or rattle the chip stock’s 47% gain over the past month amid growing Wall Street optimism over the company’s long-awaited turnaround.

Turns out most folks just want better battery life and faster graphics. Who knew? Remember a couple of years ago when Intel declared that the “age of the AI PC” had arrived?

Intel said Thursday it expects its CPU shortage to peak in the first quarter as the company indicated that the ongoing AI data center boom is creating unexpectedly high demand for server chips.

Today, Jan. 23, 2026, investors are weighing whether Intel’s supply snags and foundry losses threaten its AI data-center ambitions.

Intel is seeing momentum in server CPUs and with its manufacturing technology, leading a KeyBanc analyst to turn bullish on its stock.