Intel to begin high-volume production of Panther Lake chips in Arizona

CHANDLER, Ariz. - Intel (INTC), whose stock has surged over 86% year-to-date and currently trades near its 52-week high of $38.68, revealed details of its next-generation client processor, Intel Core Ultra series 3 (code-named Panther Lake), which will begin shipping later this year. According to InvestingPro data, the semiconductor giant, now valued at $178 billion, shows strong momentum despite trading in overbought territory. The processor will be the company’s first product built on Intel 18A, described as the most advanced semiconductor process developed and manufactured in the United States.

According to a company press release, Panther Lake is already in production and will enter high-volume manufacturing at Intel’s newest fab in Chandler, Arizona. The processors feature a multi-chiplet architecture with up to 16 cores and are designed to power a range of AI PCs, gaming devices, and edge solutions.

Intel claims the new processors will deliver more than 50% faster CPU performance and 50% faster graphics performance compared to previous generations. The company also previewed Intel Xeon 6+ (code-named Clearwater Forest), its first Intel 18A-based server processor, expected to launch in the first half of 2026.

The Intel 18A process node represents the company’s first 2-nanometer class node developed in the United States. Intel states it delivers up to 15% better performance per watt and 30% improved chip density compared to its Intel 3 process.

Production of these chips will take place at Fab 52, Intel’s fifth high-volume fabrication facility at its Ocotillo campus in Arizona. The facility is part of Intel’s $100 billion investment to expand its domestic operations.

Intel CEO Lip-Bu Tan said, "We are entering an exciting new era of computing, made possible by great leaps forward in semiconductor technology that will shape the future for decades to come."

The company expects broad market availability for Panther Lake processors starting January 2026, with the first SKU shipping before the end of this year. With Intel’s next earnings report due on October 23, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which include over 30 additional key metrics and expert analysis not covered in this article.

In other recent news, Intel has completed a $2 billion private placement of shares to SoftBank, selling 86,956,522 shares at $23.00 each. This transaction is part of Intel’s series of significant investment deals, including $11.1 billion from the US administration and $5 billion from NVIDIA, aimed at strengthening its financial position. Despite these investments, HSBC has downgraded Intel’s stock from Hold to Reduce, although the price target has been raised to $24.00 from $21.25. Meanwhile, Bernstein has reiterated its Market Perform rating with a $21.00 price target, following reports of Intel’s potential foundry talks with AMD. Deutsche Bank has raised Intel’s price target to $30.00, citing recent balance sheet moves. Additionally, Intel is reportedly in discussions with Taiwan Semiconductor Manufacturing Company for potential investments or partnerships. This follows reports of Intel’s discussions with Apple about securing an investment. These developments highlight a busy period for Intel as it navigates strategic partnerships and investment opportunities.

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