Intel, our favorite “fallen from grace” tech stock that’s spent the last few years getting clowned by its flashier, faster rivals, just pulled a massive Jeff Bezos win out of its hat. Whoa! Another win, you say?

(Source: Giphy) 

Yes sir! After solidifying a massive $3.5 billion Pentagon deal, Intel has clinched another massive “W” as the tech stock surged +17.89% yesterday (including after hours) all while the broader semiconductor sector took a nosedive. The reason? A multi-billion-dollar deal with none other than Amazon Web Services (AWS), baby.

(Source: Reuters) 

In short, this isn’t just some run-of-the-mill corporate handshake. We’re talking about a massive, multi-year framework agreement that could be the spark Intel desperately needs to reignite its big swingin’ chip-making mojo. CEO Pat Gelsinger, who's been on a mission to save his job pull Intel out of its self-dug hole, called the deal a "critical milestone." 

So what’s the basis of this agreement? Well, simply put, Intel’s Foundry Services (IFS) will be cranking out a shiny new AI fabric chip for AWS, using Intel’s very advanced (their words, not ours) 18A process node. 

(Source: Seeking Alpha) 

Translation: Intel’s making a big play to claw its way back into the AI chip market, where Nvidia has been running the show for too long. AWS signing on the dotted line is not just a win—it’s a statement. The cloud giant could’ve gone elsewhere but chose Intel. That, my friends, is a very a big deal. And Gelsinger? He’s understandably pumped. “This is a very discerning customer who has very sophisticated design capabilities,” he said, probably while doing his best Judd Nelson impersonation. 

(Source: Giphy) 

So obviously, Intel land is definitely on some bit of a high as they desperately need the wins these days. Especially since, as we all know, the company’s been getting its lunch eaten by Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung, and Nvidia this year as Intel's stock has tanked 59% this year alone - with investors and analysts wondering if Intel is about to go the way of Blockbuster. 

(Source: CNBC) 

But with this AWS deal in their arsenal—along with potential $3.5 billion in federal grants to boost defense-related chip production, Intel has now unlocked a lifeline it needs to stay in the game. And now, with Gelsinger’s grand plan to turn the company into a foundry powerhouse, basically making chips for other companies, a play straight out of TSMC’s book— Intel seems to be rising from the ashes. 

With that said though, like anything in life… It’s not going to be easy. Gelsinger himself even admitted, “We still have things to learn about becoming a foundry. [And]  I need lots of customers.” 

(Source: Giphy) 

So clearly, Intel’s not just going after AWS. It wants to be the new go-to for anyone looking to make cutting-edge chips. And to do that, Intel is setting up its foundry operations (IFS) as a wholly owned subsidiary. This move is designed to make IFS more attractive to potential customers who don’t want to work with a direct competitor. Smart.

(Source: Market Watch) 

However, even with the new jolt of optimism the company has regained, it’s not all sunshine and rainbows at Intel HQ. The company is still facing some serious challenges. First up, job cuts—15,000 of them, to be exact. Intel’s aiming to slash $10 billion in costs by 2025, and those savings aren’t going to come out of thin air. Plus, they’re hitting the pause button on construction projects in Germany and Poland for a couple of years. So yeah, it’s not like Intel’s suddenly rolling in dough.

(Source: Giphy) 

Oh, and let’s not forget the elephant in the room: Nvidia. While Intel’s stock price is finally climbing, Nvidia’s market cap has ballooned to a mind-boggling $2.9 trillion, thanks to the AI boom. Meanwhile, Intel’s market value is chilling at a comparatively meager $90 billion. That’s a pretty embarrassing stark contrast.

So in the end, while everyone thought that Intel's future hung on the balance of claiming some of the AI hype, Intel’s future is now suddenly riding on its ability to deliver on these deals. Sure, the AWS partnership and the Pentagon deal are huge steps in the right direction, but it’s going to take more than that to reclaim its throne - especially considering the semiconductor industry isn’t just competitive, it’s an absolute savage (filled with volatility). So while Intel’s got some wind in its sails, it’s still navigating intense waters. 

(Source: Giphy) 

But on the other hand, after Monday’s stock surge? It’s clear that investors are starting to bet on the underdog. And if Gelsinger can keep making moves like this AWS deal, maybe, just maybe, the comeback story of the decade is in the making. Only time will tell. But for now, things are looking a hell of a lot better than they did last week, that's for sure. 

In the meantime, keep an eye out for Intel, and as always stay safe and stay frosty friends! Until next time…

P.S. While Free Stocks.News readers eventually get our alerts (think 15-20 minutes after premium members), it’s likely you’ll miss out on the big move. Why? Well, for instance, on our last alert, we dropped $OBLG to our premium members at 9:48 EST when it was chilling at a price of $3.60. However, in less than 5 minutes after alerting our premium members, $OBLG shot up +51.22% to $5.45! Meaning, FREE readers ended up missing out on 50+% of the move BEFORE they even saw the opportunity. Talk about leaving money on the table. So if that doesn’t sit right with you, and you don’t want to miss the chunk of the move during our next alert… click here immediately for the details. 

Stocks.News holds positions in Intel and Amazon as mentioned in the article.