Intel stock jumps 4.4% as CEO highlights CPU demand at Computex

Intel's CEO said other companies are asking for more central processing units, pushing back against fears that Nvidia's new AI chip would erode demand for Intel's core product.

Intel shares rose 4.4% to $112.71 after Chief Executive Officer Lip-Bu Tan said other companies have been requesting more central processing units, countering concerns that Nvidia's new AI chip would threaten Intel's core market.

"In the past four weeks, other CEOs have been calling me asking for more CPUs," Tan said during his keynote at the Computex conference in Taipei, according to the Taipei Times.

The gain snapped a five-day losing streak that had erased 13% of Intel's value. The stock had surged 214% between late March and mid-May before retreating 22% from its closing high of $129.44 on May 11. Advanced Micro Devices, another major CPU maker, also rose 4% on the day.

The rally comes after Nvidia unveiled a new artificial intelligence chip designed for personal computers on Monday, an attack on Intel's core market that triggered the five-day selloff. Tan's remarks at Computex served as a reminder that demand for traditional CPUs remains strong even as AI chips gain traction.

Intel's 18A Process Takes Center Stage at Computex

Tan used his Computex keynote to showcase Intel's transition to its 18A process technology, which the company said has entered volume production. The new manufacturing node underpins Intel's product roadmap across consumer laptops, handheld gaming devices, and data center servers built to handle multi-agent AI workloads.

The company is positioning 18A as a competitive response to both Nvidia's GPU dominance in AI and AMD's CPU market share gains. Intel's foundry business, which manufactures chips for external customers using the 18A node, is a key pillar of Tan's turnaround strategy. The company has not yet disclosed any major external foundry customers for 18A.

GF Securities, in a note following Computex, said Intel's announcements showed moves in AI data center chips, disaggregated AI architectures, and expanding partnerships — signaling potential growth if the company secures new foundry customers.

CPU Demand vs. AI Chip Competition

The tension between Intel's traditional CPU business and the rise of AI-specific chips defines the company's current market narrative. Nvidia's push into PC AI chips threatens to erode Intel's dominance in the personal computer market, where Intel has held more than 70% market share for decades.

But Tan's comments suggest that the AI boom is also driving CPU demand, not just GPU demand. Data centers running AI workloads still require CPUs for data preprocessing, orchestration, and inference tasks — areas where Intel's Xeon processors compete directly with AMD's EPYC line.

Intel shares have gained more than 190% year to date, making it one of the best-performing semiconductor stocks in 2026. The stock trades at roughly 22 times forward earnings, a premium to its historical average but below Nvidia's multiple of 35 times.

This article is for informational purposes only and does not constitute investment advice.