It’s an understatement to say that Intel (NASDAQ:INTC) stock has a long way to go.

The company clearly has a lot on its plate. To get back on track and spark a rebound for INTC stock, the chip maker’s management is pursuing myriad turnaround efforts.

However, based on several positive developments, the company is clearly making progress with its turnaround plans. The market seemingly agrees, as seen from INTC’s more than 20% jump higher over the past six months.

While not for certain, if Intel continues to make progress, a far greater leap to higher prices may be in store. Previously, the situation looked grave and on the verge of getting worse.

Now, it’s apparent that the situation is improving. A strong growth catalyst may also be emerging. If you’ve been bearish on this stock, the time has perhaps arrived to shift your view. Here’s why.

INTC Stock and Turnaround Progress

Intel is amid a multi-faceted turnaround plan. Alongside cost reduction measures, a major aspect to this turnaround is Intel’s plans to invest billions into the construction of new chip foundries.

The company aims to become a major provider of contract manufacturing services to “fabless” semiconductor companies.

In both areas, Intel’s efforts are starting to bear fruit. As I recently pointed out, cost cutting has already started to have an impact on the company’s bottom line.

During Q2 2023, Intel reported net income of $1.5 billion. A total of $1.7 billion in cost savings played a big role in this swing back to profitability.

The foundry gambit remains a work in progress, but as Intel builds out capacity, it may not have much trouble finding demand.

The company just recently entered a foundry services agreement with Israel-based Tower Semiconductor (NASDAQ:TSEM). As TF International Securities’ Ming-Chi Kuo recently argued, chip designer Arm Holdings (NASDAQ:ARM) is likely to become a major foundry customer.

Turnaround progress notwithstanding, something else has had a greater impact on the performance of INTC stock lately. That would be the company’s move into AI chips.

A Little AI Success Could Go a Long Way

Given the substantial lead AI chip leader Nvidia (NASDAQ:NVDA) has over the competition, it may seem far-fetched that Intel can gain even a sliver of this fast-growing market.

However, I wouldn’t quickly jump to that conclusion.

Over the past month, analysts have become more appreciative of Intel’s potential AI catalysts.

As Raymond James’ Srini Pajjuri argued in a recent research note, Intel’s Gaudi AI accelerators could be a formidable competitor to a similar offering from Nvidia.

This, in turn, could enable this product to “drive meaningful revenue contribution” next year.

That’s not all. At Intel’s Innovation 2023 event on Sept. 19, the company unveiled an AI chip for the PC market. There could be solid demand for this chip, and not just among consumers.

As Reuters pointed out, in order to protect sensitive data, some commercial end users could prefer using AI PC chips to test out generative AI technologies, rather than utilize cloud-based data centers.

Make no mistake. Chances are Nvidia will keep dominating the AI chip space. Still, investors in the know are jumping into INTC stock, as even a small level of AI success could have an outsized impact on Intel’s operating performance.

The Verdict: Time to Take a Second Look

Although I have talked up several successes with Intel, I will admit that past issues and uncertainties haven’t completely gone away.

There’s reason to be confident subsequent news will bolster the bull case. Next month, when INTC is expected to release its results for the September quarter, more could emerge signaling progress with Intel’s cost cutting and foundry build-out efforts.

In the coming year, the potential with Intel’s AI chips could be realized. Due to these factors, plus the expectation that the tech slump will come to an end in 2024, analysts have already upped their earnings forecasts.

Investors are slowly moving away from their “on the fence” stance.

Ahead of a full shift of sentiment, from bearish back to bullish, take a second look at INTC stock.

INTC stock earns a B rating in Portfolio Grader.

On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.