Intel shares surged by 7.8% to an 18-month high as CEO Lip-Bu Tan’s cost-cutting measures boosted profits, marking a turnaround for the struggling chipmaker. Strategic investments from Nvidia, SoftBank, and the U.S. government, along with operational discipline, have helped Intel rebuild investor confidence, outperforming competitors like Nvidia and AMD.

Despite the positive quarter, Intel warned that chip demand exceeds supply, especially in data centers. CFO Dave Zinsner stated that manufacturing yields will not meet industry standards until 2027. CEO Tan has made significant changes, including selling a stake in Altera and reducing workforce by over 20%, but analysts caution that the turnaround is far from over.

Read more at Yahoo Finance: Intel shares jump as investments, cost cuts catapult turnaround efforts