Why Is Intel Stock Moving Higher in Premarket? Multi-Year AI Deal With SambaNova

Intel Corporation (INTC) shares are pushing higher in premarket trading on Tuesday, February 24, 2026, gaining 1.40% to $44.24 as of 6:50 AM EST, following news that the company has entered into a significant multiyear technical partnership with AI chip start-up SambaNova Systems. The deal marks a notable strategic pivot for Intel as it looks to strengthen its position in the rapidly growing artificial intelligence chip market, where it has long trailed dominant player Nvidia.

The partnership, announced alongside SambaNova’s $350 million Series E funding round, signals Intel’s commitment to carving out a meaningful role in next-generation AI data center infrastructure. The news comes at a pivotal moment for the semiconductor giant, which has been working to rebuild investor confidence after years of competitive setbacks.

Intel and SambaNova: What the Deal Entails

Intel has struck a multiyear technical partnership with SambaNova Systems, a nine-year-old semiconductor company that is positioning itself as a challenger to Nvidia’s dominance in the AI hardware space. Under the agreement, Intel and SambaNova will collaborate on developing a cloud AI service operated by SambaNova, with Intel Xeon chips now set to be integrated into SambaNova’s AI system offerings, which had previously relied on processors from Advanced Micro Devices.

The partnership aims to shape what both companies describe as the next generation of heterogeneous AI data centers, targeting the growing number of enterprises looking to reduce their reliance on Nvidia.

As part of the announcement, Intel contributed an undisclosed amount to SambaNova’s $350 million Series E funding round, which also drew participation from Vista Equity Partners, Cambium Capital, Intel Capital, Battery Ventures, and accounts advised by T. Rowe Price Associates.

SambaNova simultaneously unveiled its new SN50 chip, which the company claims delivers five times more compute per accelerator and four times more network bandwidth compared to its previous generation.

SoftBank Corp. was named as the first customer to deploy the SN50 within its next-generation AI data centers in Japan, lending significant commercial credibility to SambaNova’s technology roadmap.

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INTC Stock Snapshot and Recent Performance

Intel shares closed Monday’s regular session at $43.63, down 1.09% on the day, before the SambaNova news lifted the stock to $44.24 in premarket trading, a gain of $0.61 or 1.40%. The stock has a 52-week range of $17.67 to $54.60, reflecting the significant volatility and ongoing turnaround narrative surrounding the company.

On a year-to-date basis, INTC has gained an impressive 18.24%, and its one-year return stands at 75.43%, outperforming the S&P 500 over that period. The current market capitalization sits at approximately $217.94 billion, with an average analyst price target of $47.12, suggesting additional upside from current levels.

From an earnings perspective, Intel beat analyst expectations in Q4 FY25, reporting normalized EPS of $0.15 against an estimate of $0.08, while quarterly revenue came in at $13.67 billion with earnings of $767 million. The company’s next earnings date is scheduled for April 23, 2026. Analyst sentiment remains cautious but is showing signs of improvement, with the most recent rating from DA Davidson initiating coverage at Neutral with a $45 price target.

The deal with SambaNova does add a layer of corporate governance scrutiny, as Intel CEO Lip-Bu Tan serves as an investor and executive chairman of SambaNova – though Intel has stated he recused himself from the negotiations, which were overseen by executive vice president Kevork Kechichian.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.