Intel Corporation has received early termination from the Federal Trade Commission for its investment in SambaNova Systems, removing a significant regulatory obstacle. The FTC notice, dated May 2, 2026, granted early termination for transaction 20261227, naming Intel as the acquirer and SambaNova as the target. This clearance allows Intel to proceed with its planned $35 million investment, which raised its stake in the AI chip startup to 8.2% from 6.8% last year, with an additional $15 million investment also in the pipeline.
Market Response and Stock Performance
Intel shares closed at $99.62 on Friday, up 5.44%, and briefly touched $100.45 during the session. The stock's rally reflects growing investor confidence in AI-driven demand for Intel's server chips. The timing of the FTC clearance is critical as Intel seeks to sustain its momentum beyond a short-term bump. The company is integrating its CPU business, contract chip manufacturing, and partnerships with external AI players to capitalize on the inference phase of AI, where models respond to inputs and generate decisions.
Partnership Details and Financial Outlook
In February, Intel and SambaNova announced a multiyear partnership to develop AI inference offerings based on Intel Xeon hardware. Intel emphasized that this initiative complements its existing data-center GPU roadmap, not replaces it. SambaNova has raised $350 million in fresh funding, led by Vista Equity Partners and Cambium Capital, with SoftBank Corp as the debut customer for its SN50 chip, set for deployment in Japanese AI data centers. The funds will support SN50 production, scaling of SambaCloud, and enterprise software integrations.
Intel reported first-quarter revenue of $13.6 billion, a 7% increase year-over-year, and guided second-quarter revenue between $13.8 billion and $14.8 billion, surpassing Wall Street forecasts. The upbeat outlook was driven by demand for AI-centric CPUs, pushing Intel shares higher in after-hours trading.
Competitive Landscape and Challenges
Nvidia remains the dominant player in AI accelerators, with AMD and Arm also vying for market share. TECHnalysis Research analyst Bob O'Donnell noted that Intel's turnaround story hinges on its foundry arm delivering tangible results by 2027. Governance concerns have also surfaced, with Reuters flagging potential conflicts due to Intel CEO Lip-Bu Tan's connections to SambaNova and other startups. Intel stated that its board and policies ensure investments align with shareholder interests.
Wall Street remains cautious. UBS analyst Timothy Arcuri raised his Intel target to $83 from $65 but maintained a Neutral rating, noting that investors may overlook near-term earnings weakness as the manufacturing narrative gains traction. With the regulatory clearance in place, Intel now faces the challenge of translating SambaNova's potential, Xeon demand, and foundry wins into sustainable revenue and margin growth to support its elevated stock price.
