TLDR
- Intel launched Panther Lake processors at CES 2026, the first chips made with its 18A manufacturing process
- Core Ultra Series 3 delivers 60% better performance than previous Lunar Lake chips
- Melius Research upgraded Intel to Buy with $50 price target on foundry potential
- Intel plans handheld gaming platform launch based on Panther Lake designs in 2026
- Analyst sees possible Nvidia and Apple manufacturing deals by 2028-2029
Intel unveiled its Panther Lake processors Monday at CES 2026 in Las Vegas. The Core Ultra Series 3 chips mark the company’s first products built on its 18A manufacturing process.
The launch comes as Intel works to regain ground lost to AMD in the PC processor market. Previous Lunar Lake chips were manufactured by TSMC, not Intel’s own facilities.
CEO Lip-Bu Tan confirmed Intel delivered on its 2025 commitment to ship 18A products. The new processors feature updated transistor design and power delivery systems enabled by the advanced manufacturing node.
Intel claims the Series 3 chips deliver 60% better performance versus Lunar Lake. The design includes a separate graphics chiplet combined with other components to form the complete processor.
Handheld Gaming and New Graphics Cards
Jim Johnson, senior vice president of Intel’s PC group, detailed the Panther Lake specifications during the presentation. The chips will power laptops, desktops, and handheld gaming devices.
Intel announced plans for a Panther Lake-based handheld gaming platform later in 2026. The company also showed refreshed Arrow Lake models and previewed Arc graphics processors, including the B770.
Reuters previously reported Intel faced yield challenges with Panther Lake production. Intel executives say yields improve monthly and won’t delay the rollout.
Melius Upgrades Intel to Buy
Melius Research analyst Ben Reitzes upgraded Intel from Hold to Buy Monday. He raised his price target to $50 from $44.
Reitzes highlighted Intel’s 14A process, launching next year, as a key catalyst. He believes CEO Tan’s industry relationships could secure major foundry customers.
“There is a good chance that Nvidia (an Intel shareholder) and Apple take a hard look at producing chips on the 14A node by 2028/2029,” Reitzes wrote. He expects this news to lift Intel stock throughout 2026.
Intel shares have rallied 98.19% over the past year. Wall Street maintains a Hold consensus rating with six Buy ratings, 19 Hold ratings, and six Sell ratings. The average price target of $39 suggests limited upside from current levels.
AMD and Nvidia Also Present at CES
AMD CEO Lisa Su presented at CES Monday evening. The company recently announced a multibillion-dollar deal with OpenAI for MI400 chips expected to generate tens of billions in revenue.
Nvidia CEO Jensen Huang spoke at CES Monday, announcing next-generation AI chips in “full production.” The new chips deliver five times the computing power of previous models for AI applications.
Intel’s 18A process faces its first major test with Panther Lake. The company hopes successful production will attract foundry customers and restore confidence in its manufacturing capabilities.
