NEW YORK — Intel Corp. has dramatically outperformed International Business Machines Corp. in 2026, with shares surging more than 160% year-to-date amid a remarkable recovery driven by AI infrastructure demand and foundry partnerships, while IBM has delivered more modest gains supported by steady software and quantum computing progress.

The divergence highlights contrasting paths for two legacy tech giants navigating the artificial intelligence boom. Intel, long struggling with manufacturing challenges and competition, has rebounded sharply from 2025 lows near $19, recently trading around $100 after hitting highs above $130. IBM, trading near $290-$300, has posted solid but less explosive returns, benefiting from hybrid cloud stability and enterprise AI adoption.

Analysts present a nuanced picture. Many view IBM as the more stable long-term choice with consistent earnings and a favorable fundamental score, while Intel offers higher upside potential — and risk — tied to execution on its turnaround. Neither stock comes with a simple "buy" recommendation, as investors must weigh valuations, competitive pressures and broader semiconductor cyclicality.

Intel's Dramatic Rebound

Intel reported first-quarter 2026 revenue of $13.6 billion, up 7% year-over-year. The company guided for second-quarter revenue between $13.8 billion and $14.8 billion. Non-GAAP earnings per share showed improvement, though GAAP results reflected ongoing restructuring costs.

Key catalysts include partnerships with Foxconn for AI infrastructure, Hitachi for........

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