Track market-moving stories before they get noisy

Intel has surged over 300% in a year and hyperscalers are circling, but one unresolved question determines whether this rally is a genuine reset or the most expensive bet in semiconductors right now.

At $102.94, Intel (NASDAQ:INTC | INTC Price Prediction) is a Hold, and it will stay a Hold until one specific catalyst arrives. The stock has already priced in a spectacular turnaround narrative, up 318.29% over the past year, which means the easy money is gone and the hard question begins.

Intel is the largest US semiconductor manufacturer by revenue and the developer of the x86 architecture that still anchors most of the world’s servers and PCs. Under CEO Lip-Bu Tan, the company is executing a two-track strategy: defend and grow its CPU franchise while spending more than $20 billion in 2026 capex to stand up a credible external foundry business on the Intel 18A and 14A nodes.

The rally from roughly $41 last October to triple digits reflects investor belief that this time is different. The Q2 blowout, an NVIDIA equity investment, and US government backing all landed inside a single fiscal year. Now the question is what comes next.

Why the Bulls See a Semiconductor Comeback Story The fundamental turn is real. Q2 revenue of $16.13 billion grew 25.42% year over year, Intel’s strongest growth in more than fifteen years. Data Center and AI revenue jumped 59%, and non-GAAP EPS of $0.42 nearly doubled expectations.

The technical story is also improving. Management said “18A output increased meaningfully in the quarter” with yields tracking ahead of expectations, and 18A-P has entered risk production. On 14A, PDK 0.5 is complete and PDK 0.9 is on track for October, with defect density and transistor performance ahead of where 18A was at the same stage. Add hyperscaler validation from an NVIDIA equity stake and a Google Cloud custom ASIC deal, and the setup looks like a genuine platform reset.

Why the Bears See a Priced-In Miracle The valuation now assumes the miracle happens. Forward P/E sits at roughly 56, price-to-sales at 9.54, and EV/EBITDA at 154. Those are hyperscaler multiples on a business that still posted a $11.03 billion GAAP net loss last quarter.

Intel Foundry is the crux. External foundry revenue was just $293 million in Q2, while the segment lost $2.1 billion. Management has flagged a potential pause of Intel 14A if no anchor customer signs on. Add US government equity, geopolitical exposure, and substrate constraints, and a stock trading near $142 highs looks exposed to any execution slip.

Why Patience Beats Conviction Right Now Both cases are credible, which is exactly why Hold is the right answer. The core business is genuinely inflecting, but the foundry economics that justify the multiple are still unproven at scale. Analyst sentiment reflects that ambivalence: 32 of 48 analysts rate the stock Hold.

The catalyst that would flip the verdict is specific. Investors need a binding, multi-year, high-volume commitment from a marquee hyperscaler such as Apple, Qualcomm, or AWS on Intel 18A or 14A, paired with sustained 18A yields in the competitive range and a strong response to the October PDK 0.9 drop for 14A. Anything less, and the current multiple has to compress toward the fundamentals.

What the Numbers Actually Say About INTC Today Shares currently trade at $102.94 against a mean analyst price target of $115.74, implying roughly 12% upside from a group of 48 covering analysts. Targets are one input, not a promise, and the crowded Hold column suggests Wall Street is itself waiting for confirmation.

The ratings distribution:

Strong Buy: 1 Buy: 13 Hold: 32 Sell: 1 Strong Sell: 1 Performance has been extraordinary. INTC is up 178.97% year to date against roughly 11.85% for the S&P 500, and 7.45% in the past week alone. That gap is the risk: enormous outperformance leaves little room for disappointment.

Verdict on Intel at Triple Digits At $102.94, Intel is a Hold.

The stock has already made the trade for anyone who bought the turnaround thesis at $40 or $60. From here, the setup is asymmetric in the wrong direction unless the foundry business converts. Panther Lake and Xeon 6 keep internal fabs busy, but they cannot justify a $544 billion market cap on their own. The multiple is a foundry multiple.

The trigger to upgrade is narrow and identifiable. A named, high-volume hyperscaler commitment on 18A or 14A, alongside 18A yields pushing into the competitive 70% to 80% zone and a clean 14A PDK 0.9 reception in October, would validate the multiple and open real upside. Absent that, the next catalyst tilts negative, whether it is a 14A pause, a foundry loss that fails to narrow, or a hyperscaler choosing TSMC’s N2 instead.

Existing holders should stay long and let the thesis play out through the next two earnings prints. New buyers at $102.94 are paying full price for a story that still has one chapter unwritten. Wait for the anchor customer, then act.

Contact [email protected] for any questions or corrections.

One of the signature policies in President Donald Trump's second term has been taking direct equity investments in public companies. Since June 2025, the U.S. has taken stakes in at least 30 companies.

But the biggest -- and arguably most well-known -- of these investments was made in chipmaker Intel (INTC +2.61%). The Trump administration converted $5.7 billion in unpaid grants that were to have been awarded to the company under the CHIPS Act, plus another $3.2 billion in grants awarded under the Secure Enclave program, into funding for a direct purchase of newly issued shares.

The result was that the U.S. government acquired a 9.9% equity stake in Intel, receiving 433.3 million shares of common stock at $20.47 per share. Today, Intel stock is trading at just over $101, so the value of the government's investment has increased by 395%, from $8.9 billion to $43.9 billion.

But how would you have done had you bought $1,000 in Intel stock the day you learned that Washington was taking a stake in the chipmaker? 

Image source: Intel.

Your Intel investment versus the government Intel announced its deal with the federal government on Aug. 22, 2025. Shares opened at $23.65 that day, reached a high of $25.23, and closed at $24.80. For the sake of this discussion, we'll assume that you timed your purchase at the beginning of the trading day, as that was also the stock's low point. That means you'd be sitting on a 328% return in just over a year -- not too shabby.

Assuming that your brokerage offers fractional share purchases (as most now do), your $1,000 on Aug. 22, 2025, would have paid for 42.28 shares of Intel stock. And at the stock's price of $101.35 at this writing, your Intel stake would be worth $4,285. So, you wouldn't have profited quite as much as the federal government because it got a better deal on the stock price. But you'd likely still be thrilled with the return on your investment.

Why is Intel doing so well these days? Intel has been one of the best chipmakers you could own this year. Its stock is up 174% -- soundly outperforming peers such as Nvidia, Advanced Micro Devices, and Broadcom.

INTC data by YCharts.

The company has been benefiting from increased demand for its server central processing units (CPUs) and its custom AI chips to run agentic artificial intelligence applications.

And rising server prices have helped push the company's margins even higher. According to Wells Fargo analyst Aaron Rakers, Intel shipped 9% more Xeon server processors in the second quarter than it did in the prior-year period, but their average selling price increased by 48% from the previous year.

That helped push second-quarter revenue to $16.1 billion, up 25% from a year earlier, and gross margins improved from 27.5% to 40.4%. The company reported an $11 billion net loss, with diluted losses per share of $2.16, but the red ink was attributable to its deal with the U.S. government -- Intel's report shows a $12.5 billion loss on escrowed shares, and noted those shares will be released to the Department of Commerce as it performs and receives funds from the federal government. GAAP operating income was $1.79 billion, showing that the company's business performance was much better than the bottom-line net loss would imply.

Intel's client computing and physical AI business generated $8.9 billion in revenue in the quarter, up 13% from a year ago, while its data center and AI (DCAI) business brought in $6.3 billion, up 59%.

Intel is also growing its third-party foundry business -- a market dominated by Taiwan Semiconductor Manufacturing. Intel signed its first major foundry deal in July to make next-generation security chips for cybersecurity giant Fortinet. Intel has been investing heavily in hopes of turning its foundry operations into a profit center, but the segment still posted a $2.1 billion loss in the second quarter despite increased revenues.

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What should you be expecting from Intel now? Intel hasn't scheduled its third-quarter report, but it will likely share those results in late October. The consensus expectation of analysts is that it will report revenue of $16.42 billion, up 20% from a year ago, and earnings of $0.39 per share, up from $0.23 per share a year ago.

Among the analysts covering the stock  (per Yahoo! Finance), the average 12-month price target is nearly $116, about 15% higher than its current price.

This implies that there are still gains to be had, and an investment made the day the federal government purchased its stake should continue to grow in the short term. But for long-term growth, Intel will need to continue to expand its AI data server business -- and find more customers to justify its foundry investments.

Intel stock has surged over 300% in a year while losing billions on a GAAP basis, and the next two earnings reports will determine whether $100 is a launchpad or the ceiling investors should have sold into.

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Intel (NASDAQ:INTC | INTC Price Prediction) at $100.32 is a Hold. After a violent re-rating that took the stock from the low $40s to triple digits inside a year, the business is finally executing, but the price now demands proof that the turnaround compounds rather than plateaus.

Intel is the largest US semiconductor manufacturer by revenue and the steward of the x86 CPU franchise that still sits at the heart of most servers and PCs. Under CEO Lip-Bu Tan, the company has re-organized around three assets: x86 CPUs, advanced packaging, and its wafer foundry network. Strategic capital from NVIDIA ($5.0 billion), SoftBank ($2.0 billion), and the US government has reframed Intel from a broken legacy chipmaker into a national industrial priority. That narrative shift, plus the Intel 18A ramp, is what got the stock here.

Why the Bull Case Looks Loaded Right Now Q2 was the strongest revenue quarter in more than fifteen years. Revenue hit $16.128 billion, up 25.42% year over year, beating consensus by 11.64%. Non-GAAP EPS of $0.42 topped the $0.2175 estimate by 93.1%. Data Center and AI revenue jumped 59%, and operating cash flow jumped 241.76%.

Management says AI-driven businesses grew greater than 70% year over year and now contribute roughly 70% of revenue. Intel 18A output ran approximately 25% above target, Xeon 6 is one of the fastest-ramping products in company history, and the ASIC pipeline is tracking toward a $4 billion run rate. Analysts have responded: 32 upward revisions to 2026 EPS in the trailing 30 days versus one down.

Why the Bear Case Still Has Teeth The GAAP picture is ugly. Q2 produced a $11.033 billion net loss, driven by a $12.53 billion non-cash charge tied to the CHIPS Act escrow. Intel Foundry is still bleeding roughly $2.1 billion per quarter. Trailing net margin sits at -0.51% and ROE at -0.25%.

Valuation is now the tightrope. Forward P/E is 56 and EV/EBITDA is 156. Capex is climbing to more than $20 billion in 2026, with 2027 expected significantly higher. Retail sentiment turned bearish on Intel’s $15 Billion Common Stock Offering, a real dilution overhang on top of the government equity stake.

Why Patience Beats Conviction Here The operational data is genuinely improving, but the stock has already priced a lot of it in after climbing 305.01% over one year. Foundry profitability, external 14A customer wins, and sustained server share gains remain unproven. The next two earnings reports will decide whether $100 is a launchpad or a ceiling.

What tips the verdict to Buy: a foundry loss cut below $1.5 billion, a marquee external 14A customer, and clean Q3 execution against guidance. What tips it to Sell: any 18A yield stumble, a 14A slippage, or a downside revenue guide as PC consumption tracks down low double digits percent for all of 2026.

What the Street Is Saying Intel trades at $100.32 against a consensus 12-month target of $115.88, implying upside to that target. Targets are one data point, not a promise. The ratings distribution skews cautious.

Strong Buy: 1 Buy: 13 Hold: 32 Sell: 1 Strong Sell: 1 Performance tells the story of the re-rate. INTC is up 171.87% year to date and 305.01% over the past year, versus the S&P 500 (via SPY) at 11.15% YTD and 16.21% over one year. That gap explains why 32 analysts are sitting on Hold at these prices.

Verdict on Intel at $100.32 At $100.32, Intel is a Hold. Here is why.

The bull thesis is real and improving, but the easy money has been made. Buying here means paying 56x forward earnings for a business that still lost $11 billion on a GAAP basis last quarter and is funding a capex cycle above $20 billion with a mix of cash, government support, and equity issuance. The risk/reward inside a 15% target upside no longer compensates for foundry uncertainty.

Selling here is equally hard to justify. Demand is outrunning supply, Intel 18A yields are ahead of plan, and CEO Lip-Bu Tan just delivered the seventh consecutive quarter of exceeding financial expectations. Insider signal is constructive too, with the CEO buying 105,263 shares at $95.00 in August. Fading that setup in front of a strong Q3 guide is asking for pain.

Investors should watch three things: the Q3 print against a $15.8 to $16.8 billion revenue range, the Foundry operating loss trajectory, and any named external customer commitments on 14A once the PDK 0.9 arrives in October. Get two of those right and the stock earns a Buy upgrade. Miss on any of them and the multiple compresses fast.

Waiting is the right call at $100.32 because the turnaround is proving itself faster than the price is proving itself worth chasing.

Contact [email protected] for any questions or corrections.

Intel (INTC -4.97%) stock slumped 4.8% through 2:22 p.m. ET Thursday after the semiconductor stock received only lukewarm endorsement from investment bank Piper Sandler.

Image source: Intel.

What Piper said about Intel Piper Sandler analyst David O'Connor initiated coverage of Intel stock this morning. The big shift in the artificial intelligence industry away from "training" AIs and asking them questions ("inference") to using AI agents to accomplish tasks ("agentic AI") is a tailwind for Intel, "driving demand for its CPU server products," says O'Connor.

Weak CPU supply and strong CPU demand are likely to boost prices for Intel's products in this environment, boosting Intel to "high-teens revenue CAGR to 2030E." Nevertheless, the even stronger performance of Intel shares, which have more than quadrupled over the past year, limits further upside. For this reason, the analyst gives Intel stock only a neutral rating and predicts Intel will gain less than 10% over the next year, hitting perhaps $110 per share, as StreetInsider.com reports.

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What it means for Intel stock That's not enough to get investors excited. To the contrary, worries that 10% may be the most Intel investors can expect to gain appear to be discouraging investors from owning Intel today.

And here's another thing to worry about:

O'Connor opines that about 45% of Intel's current market capitalization assumes that the company's foundry unit will gain a whopping 15 points of market share in CPUs globally. That's possible -- but far from guaranteed. Should Intel's gains prove more muted than that, much of the last year's gains could evaporate.

Caveat investor.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.

Not many portfolio adjustments draw as much scrutiny across Wall Street as those from billionaire Stanley Druckenmiller.

The former George Soros protégé has compiled an unmatched record running Duquesne Capital, compounding returns above 30% annually over nearly three decades without a single losing year.

His macro calls carry outsized weight, aided by a career that shaped top economic policymakers, including Treasury Secretary Scott Bessent and Federal Reserve Chair Kevin Warsh.

Now managing roughly $5.2 billion in US equities at Duquesne Family Office, his latest regulatory disclosure signals a deliberate pivot.

Duquesne exited its stakes in chipmakers Intel and Micron Technology entirely during the second quarter. In their place, the firm built substantial new positions in Amazon and Tesla.

Duquesne expanded its stake in AMZN shares by elevenfold, to about 541,600 shares, while more than doubling its call-option position, enough to lift the company into the fund's top 10 holdings.

The scale of the move points to conviction beyond simple index tracking.

Amazon has spent the past year layering automation across its fulfillment network, an effort the company expects will meaningfully lower per-unit delivery costs as it scales.

Prime Air drone deliveries continue expanding into new markets, while the March 2026 acquisition of Fauna Robotics, maker of the compact Sprout humanoid, pushed Amazon into consumer-facing robotics for the first time, a segment it now shares with Tesla, Figure, and Boston Dynamics.

TSLA shares represent the second leg of the bet – expressed through call options carrying roughly $53 million in notional value rather than outright shares.

The timing looks less like coincidence than informed positioning.

Weeks after the quarter closed, Tesla Inc debuted its pedal-less Cybercab in Austin on September 3, folding the two-seat autonomous vehicle into robotaxi service already running, in varying stages of supervision, across Austin, Dallas, Houston, Miami, Orlando, Tampa, and the San Francisco Bay Area.

Tesla has also begun production of its Optimus humanoid robot – a product billionaire Elon Musk has called the company's largest long-term opportunity.

Options, rather than shares, let Stanley Druckenmiller capture that upside while limiting the capital at risk should the autonomy timeline slip.

Together, the trades mark a broader shift in institutional AI exposure, away from foundational hardware and toward operational deployment.

Duquesne is betting that the technology cycle's next economic returns accrue to companies deploying automated physical agents rather than to those building the chips beneath them.

But that bet carries real vulnerabilities as well.

Relative to current earnings, Tesla stock trades at a valuation that leans on flawless execution across autonomous fleets and mass humanoid manufacturing, leaving thin margin for error.

And 13F filings only capture a snapshot as of June 30; whether Duquesne held these options through Tesla's September milestones, or already banked short-term gains as it did with Intel and Micron, remains unknown until the next disclosure.

Compass Financial Management LLC acquired a new position in Intel Corporation (NASDAQ:INTC – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund acquired 6,716 shares of the chip maker’s stock, valued at approximately $938,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Primecap Management Co. CA bought a new stake in shares of Intel during the second quarter worth approximately $10,507,291,000. Norges Bank acquired a new stake in shares of Intel during the fourth quarter worth about $2,233,159,000. Legal & General Group Plc bought a new position in Intel in the second quarter valued at approximately $4,096,110,000. Capital Research Global Investors lifted its position in Intel by 285.9% in the 4th quarter. Capital Research Global Investors now owns 26,619,928 shares of the chip maker’s stock valued at $982,279,000 after acquiring an additional 19,722,010 shares in the last quarter. Finally, Capital World Investors lifted its holdings in shares of Intel by 20.3% in the fourth quarter. Capital World Investors now owns 104,060,268 shares of the chip maker’s stock valued at $3,839,833,000 after purchasing an additional 17,557,147 shares in the last quarter. 64.53% of the stock is owned by institutional investors.

Analyst Ratings Changes Several research analysts recently commented on the stock. Weiss Ratings cut shares of Intel from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, August 18th. Moffett Nathanson lowered Intel to a “neutral” rating in a report on Thursday, June 11th. Northland Securities raised shares of Intel from a “market perform” rating to an “outperform” rating and set a $120.00 price target on the stock in a report on Tuesday. JPMorgan Chase & Co. increased their price objective on Intel from $45.00 to $85.00 and gave the stock an “underweight” rating in a research report on Friday, July 24th. Finally, Seaport Research Partners reiterated a “buy” rating and issued a $125.00 price target on shares of Intel in a research report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, twenty-eight have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, Intel has an average rating of “Hold” and an average price target of $107.80.

Check Out Our Latest Stock Report on Intel Insider Activity In other Intel news, CEO Lip Bu Tan purchased 105,263 shares of the company’s stock in a transaction dated Tuesday, August 11th. The stock was purchased at an average price of $95.00 per share, with a total value of $9,999,985.00. Following the completion of the purchase, the chief executive officer owned 1,314,669 shares of the company’s stock, valued at approximately $124,893,555. The trade was a 8.70% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Insiders own 0.05% of the company’s stock.

Intel Price Performance INTC stock opened at $106.24 on Thursday. The company has a 50 day simple moving average of $98.61 and a 200 day simple moving average of $89.40. The stock has a market cap of $535.87 billion, a price-to-earnings ratio of -50.35, a P/E/G ratio of 11.19 and a beta of 2.22. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.60 and a quick ratio of 1.25. Intel Corporation has a 1 year low of $24.05 and a 1 year high of $142.35.

Intel (NASDAQ:INTC – Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The chip maker reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.21. The company had revenue of $16.13 billion for the quarter, compared to the consensus estimate of $14.43 billion. Intel had a positive return on equity of 2.62% and a negative net margin of 19.79%.Intel’s revenue for the quarter was up 25.2% on a year-over-year basis. During the same quarter last year, the business posted ($0.10) EPS. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. Research analysts anticipate that Intel Corporation will post 1.04 EPS for the current fiscal year.

Key Intel News Here are the key news stories impacting Intel this week:

Positive Sentiment: Intel reportedly confirmed a roughly 10% increase in enterprise CPU prices, potentially improving average selling prices, margins and cash generation as data-center demand remains strong. Intel’s ASML Milestone Gives Investors a New Reason to Revisit the Stock Positive Sentiment: Intel Foundry and ASML said Intel has processed more than one million wafers using High-NA EUV equipment. The milestone supports confidence in Intel’s 18A process, Panther Lake production and its long-term foundry turnaround. Intel Foundry and ASML Collaborate to Accelerate Industry Readiness for High NA EUV Positive Sentiment: Northland upgraded Intel to Outperform and cited potential foundry scale from Elon Musk’s proposed Terafab, while other coverage highlighted a $120 price target and 59% AI-related growth. These developments reinforced the view that Intel’s turnaround is becoming more visible. Positive Sentiment: Intel’s second-quarter results exceeded expectations, with $16.13 billion in revenue and $0.42 in earnings per share versus consensus of $14.43 billion and $0.21, respectively. Revenue rose 25.2% year over year. Neutral Sentiment: The $20 billion capital raise initially raised dilution concerns, but commentary now suggests it may strengthen Intel’s balance sheet and fund strategic manufacturing investments rather than signal financial distress. After the Dip, Intel’s $20 Billion Raise Is Not the Red Flag It Originally Looked Like Negative Sentiment: Valuation and execution risks remain significant after the rally. Analysts noted that a $120 target leaves limited near-term upside, while Intel still must prove that High-NA yields, pricing gains and foundry volumes translate into sustainable profits. Negative Sentiment: Apple’s continued removal of Intel-based Mac support underscores Intel’s long-term loss of share in the Mac ecosystem, although this is a structural rather than immediate earnings issue. Intel Company Profile (Free Report)

Intel Corporation (NASDAQ: INTC) is a global semiconductor company that designs and manufactures computing and communications products. Its portfolio includes Intel Core processors for personal computers, Xeon processors for data centers and enterprise systems, and products for edge computing, networking, and other specialized applications.

Intel also develops graphics processing units under its Intel Arc and Intel Data Center GPU brands, Gaudi artificial intelligence accelerators, Ethernet products, software, and related platform technologies.

Recommended Stories Five stocks we like better than Intel Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord Want to see what other hedge funds are holding INTC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Intel Corporation (NASDAQ:INTC – Free Report).

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The turnaround is becoming visible, but Tuesday's 9% surge already consumed much of the projected upside. Summary

Intel’s server rebound supports the upgrade while its rapidly rising valuation demands continued margin repair.

Intel INTC, the semiconductor designer and manufacturer rebuilding its foundry operation, extended its rally by approximately 1.6% to $106.075 Wednesday after surging 9.1% Tuesday. Northland upgraded the stock from Market Perform to Outperform and set a $120 price target, adding fresh momentum to Intel's turnaround story.

The operating numbers are finally moving in the right direction. Intel's second-quarter results showed revenue rising 25% to $16.1 billion, while Data Center and AI sales rocketed 59% to $6.3 billion. GAAP gross margin expanded 12.9 percentage points to 40.4%, and operating margin rebounded to 11.1% from a loss a year earlier.

Data Center and AI now generates roughly 39% of total revenue, but the valuation leaves little room for a stumble. The picture shows Intel trading 231.8% above its GF Value estimate of $31.97, while Northland's $120 target offers only about 13% upside from $106.075. The turnaround is gaining muscle, but Intel still must defend server pricing, secure outside foundry customers and convert heavy investment into durable cash flow.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Two things at Intel (INTC +9.05%) have nearly quadrupled over the past 12 months. One is the quarterly operating income of the chipmaker's data center business. The other is its stock price, which trades near $96 as of this writing, up from a 52-week low of $24.05 and about a third below the high of $142.35 it set in late June.

The rally has lifted Intel's market value to about $500 billion -- this for a company that lost $11 billion on paper in its most recent quarter. And the price is about 47 times what analysts think the company can earn next year.

The business is improving faster than it has in years. I just don't think it has improved as fast as the price.

Image source: Intel.

The data center business earned the rallyIntel's second-quarter revenue of $16.1 billion was up 25% year over year -- growth CEO Lip-Bu Tan called the company's strongest in more than 15 years.

No part of the company improved more than the data center and artificial intelligence (AI) segment. A year ago, the segment earned $633 million of operating income in a quarter. In the first quarter of 2026, it earned $1.5 billion. And in the second quarter, the figure reached $2.5 billion. Revenue growth is accelerating as well, from 22% in the first quarter to 59% in the second.

Management said the quarter's server growth was the strongest on record. The segment's operating margin, meanwhile, now sits at about 40%.

Companywide, adjusted earnings per share swung from a year-ago loss of $0.10 to a profit of $0.42.

The $11 billion net loss Intel reported for the period, meanwhile, traces to a $12.5 billion noncash charge tied to shares held in escrow for the U.S. government, which took a stake in the company last year. Cash from operations during the quarter was $7 billion.

Is the foundry fixed?Not yet -- but it is losing money more slowly. Intel Foundry's second-quarter revenue grew 31% year over year to $5.8 billion, and it still lost $2.1 billion at the operating line, an improvement from $3.2 billion in the same period last year. First-half losses total $4.5 billion, down from $5.5 billion a year earlier.

Nearly all of that revenue, however, still comes from Intel buying from itself. Customers outside the company accounted for just $293 million in the period, compared with $22 million in the same quarter of 2025. That leaves external sales at less than 2% of Intel's total revenue.

So far, Intel has yet to announce a high-volume outside customer for Intel 14A, its next-generation manufacturing process. The foundry did sign a named customer in July, when cybersecurity specialist Fortinet picked Intel to build its next security chip. But that chip will use an older Intel process, not 14A.

Of course, the spending comes first. David Zinsner, Intel's chief financial officer, said in the second-quarter earnings release that to support expected growth "this year and next across products and foundry, we are meaningfully increasing our investments in equipment, clean room space, and substrates."

Additionally, Intel sold about 242 million new shares at $95 apiece in August, raising about $23 billion. The sale gives Intel a war chest for the build-out, and it puts the share count about 20% above the year-ago average.

The stock is priced ahead of the businessIntel's adjusted earnings per share total $0.71 through two quarters, and management guided to $0.38 for the third. Even with a stronger fourth quarter, 2026 looks likely to land near $1.50 per share. Analysts expect about $2 next year.

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That works out to 47 times next year's earnings with the stock at about $96. Taiwan Semiconductor Manufacturing (TSM +2.35%), the world's largest chip foundry and arguably the finished version of the business Intel is trying to build, costs about 20 times its expected earnings for next year.

In other words, the market is not paying for what Intel earns today. It is paying for what could happen: the data center segment keeps growing quickly, the foundry approaches breakeven, and outside customers sign on in volume. Each looks more believable after the second quarter. But at this valuation, all three need to happen just to hold the current price.

Ultimately, is Intel stock a buy after a year like that? I don't think so.

Growth could keep accelerating, and the foundry's losses could keep narrowing. The second quarter showed both. But the price already assumes years more of it. If I wanted to own a leading-edge foundry today, I'd rather buy Taiwan Semiconductor at less than half the forward price-to-earnings multiple. As for Intel, I'd wait for a better entry point.

Corient Private Wealth LP bought a new stake in shares of Intel Corporation (NASDAQ:INTC – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 3,035,665 shares of the chip maker’s stock, valued at approximately $184,007,000. Corient Private Wealth LP owned about 0.06% of Intel at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. iA Global Asset Management Inc. lifted its position in Intel by 17.0% in the 4th quarter. iA Global Asset Management Inc. now owns 593,043 shares of the chip maker’s stock worth $21,883,000 after buying an additional 86,189 shares during the last quarter. Whalerock Point Partners LLC bought a new position in Intel during the fourth quarter valued at approximately $205,000. Dixon Mitchell Investment Counsel Inc. bought a new position in Intel during the fourth quarter valued at approximately $185,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of Intel by 5.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 255,261 shares of the chip maker’s stock worth $9,419,000 after acquiring an additional 13,858 shares in the last quarter. Finally, Vestor Capital LLC purchased a new position in shares of Intel during the first quarter worth approximately $9,441,000. Hedge funds and other institutional investors own 64.53% of the company’s stock.

Intel Price Performance Shares of Intel stock opened at $91.67 on Friday. The company’s fifty day simple moving average is $101.10 and its two-hundred day simple moving average is $87.85. Intel Corporation has a 12-month low of $23.75 and a 12-month high of $142.35. The firm has a market cap of $462.38 billion, a PE ratio of -43.45, a price-to-earnings-growth ratio of 9.94 and a beta of 2.22. The company has a quick ratio of 1.25, a current ratio of 1.60 and a debt-to-equity ratio of 0.47.

Intel (NASDAQ:INTC – Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The chip maker reported $0.42 EPS for the quarter, beating the consensus estimate of $0.21 by $0.21. The firm had revenue of $16.13 billion during the quarter, compared to the consensus estimate of $14.43 billion. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The company’s quarterly revenue was up 25.2% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.10) earnings per share. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. As a group, equities analysts expect that Intel Corporation will post 1.01 EPS for the current year. Insider Transactions at Intel In other Intel news, CEO Lip Bu Tan purchased 105,263 shares of the stock in a transaction on Tuesday, August 11th. The stock was acquired at an average price of $95.00 per share, with a total value of $9,999,985.00. Following the transaction, the chief executive officer directly owned 1,314,669 shares of the company’s stock, valued at approximately $124,893,555. This trade represents a 8.70% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.05% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In INTC has been the subject of a number of research reports. Oppenheimer began coverage on shares of Intel in a research note on Thursday, June 11th. They issued an “outperform” rating for the company. Zacks Research cut shares of Intel from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 31st. Roth Capital boosted their price target on shares of Intel from $100.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Jefferies Financial Group began coverage on shares of Intel in a research report on Thursday, June 11th. They set a “buy” rating for the company. Finally, Arete Research raised their price objective on Intel from $20.40 to $99.00 and gave the company a “neutral” rating in a research note on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, thirty-one have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $107.46.

View Our Latest Analysis on Intel

Key Intel News Here are the key news stories impacting Intel this week:

Positive Sentiment: A reported leak suggesting Intel could launch its Nova Lake client processor lineup as early as 2027 provided a potential catalyst. Earlier availability could strengthen Intel’s product roadmap and support a recovery in its PC and data-center businesses. Intel Stock Gains as Nova Lake Launch Schedule Leaks Positive Sentiment: Coverage highlighted Nvidia’s roughly $5 billion investment in Intel, including its purchase of more than 214 million shares at $23.28 each, and the companies’ product collaboration. The large paper gain on Nvidia’s stake reinforces market confidence in Intel’s strategic importance and AI potential, although it does not directly generate new revenue for Intel. Nvidia’s Intel Investment and Partnership Positive Sentiment: Intel’s expanded partnership with Kasm Technologies will run private large language models on Xeon 6 processors with Advanced Matrix Extensions, targeting regulated customers that require local and compliant AI. The deal supports Intel’s strategy of positioning Xeon as infrastructure for enterprise AI workloads. Intel Kasm AI Partnership Neutral Sentiment: Intel recently reported stronger-than-expected quarterly revenue and earnings, with revenue up 25% year over year, while management expects 2026 capital expenditures to exceed $20 billion and spending to rise significantly in 2027. The investment could support future manufacturing and AI growth, but it increases execution and cash-flow demands. Intel’s Five-Year Outlook Neutral Sentiment: A separate report said Intel’s 14A manufacturing process is beginning to demonstrate its strategic value, offering a potential long-term foundry catalyst. However, meaningful financial benefits depend on customer commitments and successful execution. Negative Sentiment: Mizuho analyst Vijay Rakesh cut his Intel price target to $92 from $109 while retaining a Hold rating, arguing that AI strength may not offset near-term business strain. The revised target leaves limited upside based on the referenced trading level. Mizuho Cuts Intel Price Target Negative Sentiment: Intel traded lower in premarket alongside Micron, SanDisk and AMD as semiconductor stocks faced broader sector pressure. Commentary also emphasized AMD’s stronger AI and data-center margin profile, highlighting competitive risks for Intel’s turnaround. Intel Profile (Free Report)

Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.

Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.

Recommended Stories Five stocks we like better than Intel The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern

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Brasada Capital Management LP bought a new position in shares of Intel Corporation (NASDAQ:INTC – Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 16,527 shares of the chip maker’s stock, valued at approximately $2,308,000.

A number of other institutional investors have also added to or reduced their stakes in INTC. iA Global Asset Management Inc. raised its stake in shares of Intel by 17.0% during the 4th quarter. iA Global Asset Management Inc. now owns 593,043 shares of the chip maker’s stock valued at $21,883,000 after buying an additional 86,189 shares during the last quarter. Whalerock Point Partners LLC purchased a new stake in shares of Intel in the fourth quarter worth about $205,000. Dixon Mitchell Investment Counsel Inc. purchased a new stake in shares of Intel in the fourth quarter worth about $185,000. Northwestern Mutual Wealth Management Co. grew its holdings in Intel by 5.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 255,261 shares of the chip maker’s stock worth $9,419,000 after acquiring an additional 13,858 shares during the period. Finally, Vestor Capital LLC acquired a new stake in Intel during the first quarter worth about $9,441,000. Hedge funds and other institutional investors own 64.53% of the company’s stock.

Intel Trading Up 1.8% Shares of INTC opened at $91.67 on Friday. Intel Corporation has a 52-week low of $23.75 and a 52-week high of $142.35. The company has a quick ratio of 1.25, a current ratio of 1.60 and a debt-to-equity ratio of 0.47. The firm’s fifty day moving average is $101.10 and its two-hundred day moving average is $87.85. The stock has a market cap of $462.38 billion, a PE ratio of -43.45, a price-to-earnings-growth ratio of 9.94 and a beta of 2.22.

Intel (NASDAQ:INTC – Get Free Report) last issued its earnings results on Thursday, July 23rd. The chip maker reported $0.42 EPS for the quarter, beating analysts’ consensus estimates of $0.21 by $0.21. The business had revenue of $16.13 billion during the quarter, compared to analysts’ expectations of $14.43 billion. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The company’s quarterly revenue was up 25.2% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.10) earnings per share. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. Research analysts forecast that Intel Corporation will post 1.01 earnings per share for the current fiscal year. Intel News Roundup Here are the key news stories impacting Intel this week:

Positive Sentiment: A reported leak suggesting Intel could launch its Nova Lake client processor lineup as early as 2027 provided a potential catalyst. Earlier availability could strengthen Intel’s product roadmap and support a recovery in its PC and data-center businesses. Intel Stock Gains as Nova Lake Launch Schedule Leaks Positive Sentiment: Coverage highlighted Nvidia’s roughly $5 billion investment in Intel, including its purchase of more than 214 million shares at $23.28 each, and the companies’ product collaboration. The large paper gain on Nvidia’s stake reinforces market confidence in Intel’s strategic importance and AI potential, although it does not directly generate new revenue for Intel. Nvidia’s Intel Investment and Partnership Positive Sentiment: Intel’s expanded partnership with Kasm Technologies will run private large language models on Xeon 6 processors with Advanced Matrix Extensions, targeting regulated customers that require local and compliant AI. The deal supports Intel’s strategy of positioning Xeon as infrastructure for enterprise AI workloads. Intel Kasm AI Partnership Neutral Sentiment: Intel recently reported stronger-than-expected quarterly revenue and earnings, with revenue up 25% year over year, while management expects 2026 capital expenditures to exceed $20 billion and spending to rise significantly in 2027. The investment could support future manufacturing and AI growth, but it increases execution and cash-flow demands. Intel’s Five-Year Outlook Neutral Sentiment: A separate report said Intel’s 14A manufacturing process is beginning to demonstrate its strategic value, offering a potential long-term foundry catalyst. However, meaningful financial benefits depend on customer commitments and successful execution. Negative Sentiment: Mizuho analyst Vijay Rakesh cut his Intel price target to $92 from $109 while retaining a Hold rating, arguing that AI strength may not offset near-term business strain. The revised target leaves limited upside based on the referenced trading level. Mizuho Cuts Intel Price Target Negative Sentiment: Intel traded lower in premarket alongside Micron, SanDisk and AMD as semiconductor stocks faced broader sector pressure. Commentary also emphasized AMD’s stronger AI and data-center margin profile, highlighting competitive risks for Intel’s turnaround. Analyst Upgrades and Downgrades A number of research analysts have issued reports on the company. JPMorgan Chase & Co. boosted their price target on Intel from $45.00 to $85.00 and gave the company an “underweight” rating in a report on Friday, July 24th. Needham & Company LLC reaffirmed a “hold” rating on shares of Intel in a report on Friday, July 24th. Robert W. Baird boosted their target price on shares of Intel from $75.00 to $125.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. BTIG Research upgraded shares of Intel from a “neutral” rating to a “buy” rating in a research report on Thursday, June 11th. Finally, Truist Financial increased their target price on shares of Intel from $81.00 to $108.00 and gave the stock a “hold” rating in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, thirty-one have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $107.46.

View Our Latest Report on Intel

Insider Transactions at Intel In other Intel news, CEO Lip Bu Tan acquired 105,263 shares of the business’s stock in a transaction on Tuesday, August 11th. The stock was bought at an average price of $95.00 per share, for a total transaction of $9,999,985.00. Following the acquisition, the chief executive officer owned 1,314,669 shares in the company, valued at approximately $124,893,555. The trade was a 8.70% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 0.05% of the company’s stock.

About Intel (Free Report)

Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.

Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.

See Also Five stocks we like better than Intel The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern

Receive News & Ratings for Intel Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Intel and related companies with MarketBeat.com's FREE daily email newsletter.

Intel (INTC +1.21%) closed at $24 a share a year ago. As of this writing, it trades near $89, about 3.7 times the price a year ago. The stock has also risen around 141% in 2026 alone.

However, the stock hit a high of $142.35 in late June and has fallen around 38% since then. It also trades below the $95 a share that Intel got in August, when it sold about 242 million new shares for approximately $23 billion.

The stock's direction from here depends on three things: whether the foundry wins external customers, how quickly earnings grow under more than $20 billion in capital expenditures, and across how many shares those earnings are split. Here is how I would turn those three into a range.

Image source: Intel.

Growth is backIntel's revenue in the second quarter rose 25% year over year, to $16.1 billion -- an acceleration from the first quarter's 7% and the fourth quarter of 2025's 4% decline. Non-GAAP (adjusted) gross margin reached 41.8%, 12 percentage points wider than a year earlier, and adjusted earnings per share were $0.42, versus a loss of $0.10 in the year-ago quarter.

The data center and artificial intelligence (AI) segment did most of the work, with revenue rising 59% year over year, to $6.3 billion, and operating income of $2.5 billion.

And management forecasts third-quarter revenue between $15.8 billion and $16.8 billion, implying about 19% growth at the midpoint -- slower, but well above anything Intel posted in 2025.

Will the foundry win any big customers?Intel's foundry revenue grew 31% year over year, to $5.8 billion, and its operating loss narrowed to $2.1 billion, from $3.2 billion a year earlier and $2.4 billion three months prior. But almost all of that revenue comes from Intel making chips for itself. Revenue from external customers was $293 million.

The company is spending as if that could change. Chief financial officer David Zinsner said on the second-quarter earnings call that Intel now expects capital expenditures of more than $20 billion in 2026 and that 2027 spending should be "significantly above the 2026 levels."

None of this has a big external name attached yet. Fortinet joined in July for a security processor, but the grand prize is Intel 14A, the next manufacturing process.

Version 0.9 of the 14A design kit (the toolset external chip designers work on) is scheduled for October. And CEO Lip-Bu Tan said in January that he expected customers to start making firm supplier decisions in the second half of this year and during the first half of 2027.

Those customer decisions, I believe, are what drive both ends of the range. Zinsner said in January that Intel would not spend on 14A capacity until it had secured customers. But Tan said on the second-quarter earnings call that Intel decided during the quarter to fully commit to high-volume 14A production in 2028, citing demand for its own products along with customer conversations. So the money will be spent either way. An external commitment determines whether customers help pay for it.

Intel had 5.04 billion shares outstanding at the end of June, and the August sale added about 242 million. That puts the number near 5.3 billion, approximately 21% above the year-ago quarter's average of 4.37 billion.

Of course, the balance sheet strengthened. Intel had about $30 billion in cash and short-term investments at the end of June, before the sale. But every dollar the company earns will be split across a fifth more shares than a year ago.

Analysts expect around $2 in adjusted earnings per share next year. At $89, that equals about 44 times next year's earnings.

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At the low end, no big 14A customer emerges and the foundry continues to lose money on Intel's own chips. That leaves a products company earning about $2 a share, which, at 15 times earnings, could put the stock near $30.

At the midpoint, the foundry reaches breakeven by the end of the decade, earnings rise to about $3.50 a share, and a 25-times-earnings multiple puts the stock near $90.

At the high end, 14A wins a couple of big customers, the foundry turns profitable, and earnings reach about $6 a share by 2031. At between 25 and 28 times earnings, that equals between $150 and $170, or an annual return of between 11% and 14% from here.

In other words, the current price already assumes the middle scenario. It could be said that the business is in its best shape in a decade. But, at this price, the reward for being right on the foundry is approximately the same size as the penalty for being wrong. I would stay on the sidelines for now. An identified 14A customer with volume to back it up would change my mind.

CHINA - 2026/08/18: In this photo illustration, an Intel logo is displayed on a tablet screen. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)

SOPA Images/LightRocket via Getty Images

This article was written by Doug Nathman, with research by his team at Trefis.

Intel (INTC) stock has gained 278% during the past year. At roughly 8.2 times sales, it ranks in the top decile of its own decade, a valuation that works only if the factories ultimately profit like a business rather than consume one. What should concern a holder is the current cost of those factories.

The $2.1 Billion Intel Foundry Lost In A Single QuarterIntel Foundry, its manufacturing unit, recorded $5.8 billion in revenue during the second quarter of 2026 and an operating loss of $2.1 billion. That nullifies most of the $2.5 billion in operating profit generated by the data center AI group in that same quarter. Over the trailing twelve months, the entire company generated a 7.6% operating margin on $57.0 billion of revenue, only a fraction of the approximately 34% margin it earned at its peak, while revenue rose 7.5% year over year.

External Customers Were Only $293 Million Of Q2 Foundry RevenueOnly $293 million of the foundry’s Q2 2026 revenue was generated from external customers, or about 5% of the segment’s sales. Intel purchasing wafers from Intel accounts for nearly all of the remainder, leaving it to bear the loss.

That said, wafer costs are getting better through higher yields, better cycle times, and greater factory scale across its leading-edge nodes, while management says the cost of its main Panther Lake part has fallen roughly 50% year to date, with another 20% expected in 2026. By the CFO’s own description, Panther Lake and Intel’s other newer parts are becoming a meaningful portion of the mix even as they remain below the corporate average margin early in their life cycle.

Capex Above $20 Billion, And Higher Again In 2027Management is increasing 2026 capital spending to more than $20 billion and has indicated that 2027 will be significantly higher than that. About $30 billion in cash and short-term investments, along with a $10 billion revolver, currently cover that cost, in addition to roughly $10 billion of noncore assets the CFO says could still be monetized, though he has said a ramp as successful as Intel is pursuing could still drive it to the capital markets. Much of that spending pursues a single build-out, and the mix is already tilted in that direction: AI-driven businesses supplied roughly 70% of revenue in Q2 2026, including record data center growth.

How Fast $2.1 Billion Shrinks Is The Whole QuestionThe foundry loss is contracting rather than expanding: the $348 million quarter-over-quarter improvement is genuine. Yet it is slow progress against a $2.1 billion gap, and at 8.2 times sales, a holder is already paying for fabs that support themselves. What would alter the assessment is a foundry loss declining more quickly than the capital budget increases.

CM Wealth Advisors LLC purchased a new stake in Intel Corporation (NASDAQ:INTC – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 11,379 shares of the chip maker’s stock, valued at approximately $1,589,000. Intel makes up 0.3% of CM Wealth Advisors LLC’s portfolio, making the stock its 26th largest holding.

A number of other hedge funds have also added to or reduced their stakes in INTC. Financially Speaking Inc lifted its position in shares of Intel by 69.2% in the 4th quarter. Financially Speaking Inc now owns 682 shares of the chip maker’s stock worth $25,000 after purchasing an additional 279 shares during the period. Financial Life Planners purchased a new position in shares of Intel during the first quarter valued at about $25,000. Glynn Capital Management LLC bought a new position in Intel in the second quarter worth about $29,000. Knuff & Co LLC bought a new position in Intel in the second quarter worth about $29,000. Finally, Swiss RE Ltd. purchased a new stake in Intel in the fourth quarter worth about $29,000. 64.53% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In Several analysts have weighed in on the company. Rosenblatt Securities lifted their price objective on Intel from $65.00 to $80.00 and gave the company a “sell” rating in a research report on Friday, July 24th. Wells Fargo & Company increased their target price on Intel from $110.00 to $120.00 and gave the stock an “equal weight” rating in a research report on Friday, July 24th. Moffett Nathanson lowered Intel to a “neutral” rating in a research report on Thursday, June 11th. TD Cowen lifted their price target on Intel from $75.00 to $115.00 and gave the company a “hold” rating in a research report on Monday, July 13th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Intel in a research note on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, thirty-one have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $107.46.

Read Our Latest Report on Intel Intel Stock Down 2.8% NASDAQ:INTC opened at $89.47 on Friday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.25 and a current ratio of 1.60. The firm has a market cap of $451.29 billion, a P/E ratio of -42.40 and a beta of 2.22. Intel Corporation has a fifty-two week low of $23.68 and a fifty-two week high of $142.35. The firm has a 50-day simple moving average of $104.64 and a two-hundred day simple moving average of $86.39.

Intel (NASDAQ:INTC – Get Free Report) last issued its earnings results on Thursday, July 23rd. The chip maker reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.21. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The firm had revenue of $16.13 billion for the quarter, compared to the consensus estimate of $14.43 billion. During the same quarter in the prior year, the firm posted ($0.10) earnings per share. The business’s revenue was up 25.2% on a year-over-year basis. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. Analysts predict that Intel Corporation will post 1 earnings per share for the current fiscal year.

Insider Transactions at Intel In other Intel news, CEO Lip Bu Tan acquired 105,263 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were acquired at an average cost of $95.00 per share, with a total value of $9,999,985.00. Following the transaction, the chief executive officer owned 1,314,669 shares of the company’s stock, valued at $124,893,555. The trade was a 8.70% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.05% of the company’s stock.

Intel News Roundup Here are the key news stories impacting Intel this week:

Positive Sentiment: Chief Executive Officer Lip-Bu Tan reportedly purchased approximately $10 million of Intel stock at $95 per share earlier this month. The shares now trade below that level, making the purchase a potential signal of management’s confidence in Intel’s turnaround. Intel CEO insider purchase article Positive Sentiment: Fundstrat ETFs added Intel to a quarterly rebalance, which could provide incremental institutional demand and reflects improving sentiment toward the chipmaker. Fundstrat ETF rebalance article Positive Sentiment: Intel has gained attention from investors following reports of a new Advantech connection and its potential role in AI infrastructure. Strong Nvidia results also reinforced expectations that demand for data-center and AI-related hardware remains robust. Intel Advantech connection article Neutral Sentiment: Reports that investor Nancy Pelosi bought Intel shares and call options may support retail and political-investor interest, but the trade does not change Intel’s operating outlook. Nancy Pelosi Intel investment article Negative Sentiment: Intel’s manufacturing operations reportedly continue to lose money on wafers, much of which are sold internally. The stock’s elevated valuation appears to assume that the foundry business eventually becomes profitable, leaving substantial execution risk if losses persist. Intel manufacturing losses article Negative Sentiment: Intel is also being pressured by broad semiconductor profit-taking after Nvidia’s earnings-fueled rally. Raymond James reportedly prefers AMD over Intel among the two AI-exposed CPU companies, highlighting competitive concerns and uncertainty over Intel’s ability to convert AI demand into durable growth. Semiconductor profit-taking article Intel Profile (Free Report)

Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.

Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.

Read More Five stocks we like better than Intel From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week Want to see what other hedge funds are holding INTC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Intel Corporation (NASDAQ:INTC – Free Report).

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The three largest sales of new stock by already-public companies this year now share one purpose: funding artificial intelligence (AI).

Chinese e-commerce and cloud giant Alibaba (BABA -0.73%) priced an 80 billion Hong Kong dollar placement (about $10.2 billion) on Sunday, selling 710 million newly issued shares at 112.70 Hong Kong dollars each. The company says 100% of the net proceeds will go into its full-stack AI capabilities, including expanding its AI infrastructure. The deal is expected to close Wednesday.

The market's reaction was quick. Alibaba's Hong Kong-listed shares fell 8.4% in Monday's session there, converging almost exactly on the placement price. The U.S.-listed shares held up better, trading about flat as of this writing after a drop in the premarket.

According to Reuters, the deal ranks as the world's third-largest primary follow-on share sale this year, after offerings from Alphabet (GOOG +0.83%)(GOOGL +0.94%) and Intel (INTC -3.12%), and the largest ever by a Hong Kong-listed company. That list, I'd argue, is the story. The AI build-out has grown past the point where even its richest participants can fund it from cash flow alone.

Image source: Alibaba.

Why Alibaba wants the moneyAlibaba isn't raising cash from a position of weakness in its business. After all, its cloud division's external revenue grew 45% year over year in the June quarter, an acceleration, and the company says its AI-related product revenue has now grown at a triple-digit rate for 12 consecutive quarters.

But the strain shows up below the revenue line. Net income fell 75% year over year to about $1.5 billion last quarter. And free cash flow ran to an outflow of about $6.6 billion, more than double the year-ago quarter's outflow, as capital expenditures jumped 75% year over year to 67.7 billion yuan.

The scale of the plan explains why. Alibaba committed last year to investing at least 380 billion yuan (more than $50 billion) in cloud and AI infrastructure over three years, and the company said last week it has already spent nearly half of it. Management told investors the expected payback period on its AI investments is on track to fall to about 2.5 years from three, driven by demand.

In other words, selling about 4% more shares (710 million new shares) is the price of keeping that pace without draining the balance sheet.

A three-company patternWhat makes the deal notable is less Alibaba than the pattern it completes.

Alphabet went first, in June, announcing an $84.75 billion equity program made up of $34.75 billion in underwritten public offerings, a $40 billion at-the-market program (a large piece of which covers tax obligations on employee stock awards), and a $10 billion private placement to Berkshire Hathaway. Alphabet's services generate enormous cash, and the company still chose to sell stock rather than fund this year's capital expenditures, which it now expects to reach $195 billion to $205 billion, from cash flow alone.

Intel followed in August, pricing a $20 billion common stock sale at $95 per share, upsized from $15 billion the same day on strong demand. The proceeds are for general corporate purposes, including capital expenditures.

Investor appetite for these deals has been striking. Alibaba's placement was oversubscribed, with sovereign wealth funds among the buyers, and the company increased the deal's size, according to Reuters. Notably, Intel's underwriters exercised their full option for additional shares, taking that deal to about $23 billion.

Paying up frontBut the aftermarket tells a more cautious story. Intel now trades near $87 as of this writing, about 8% below the price the offering's buyers paid two weeks ago. And Alibaba's Hong Kong shares closed Monday's session almost exactly at the placement price. The U.S. shares, near $119 as of this writing, sit about 38% below their 52-week high of $192.67 even before the new shares land.

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118.47

Institutions clearly want exposure to AI infrastructure at scale. Existing shareholders, though, absorb about 4% dilution today in exchange for data centers whose returns arrive over years -- and only if the payback management describes holds up.

I think the equity funding itself is a rational choice. Stock is expensive capital, but it is permanent, and a build-out this large funded with debt would be far riskier.

But the raise moves the bar. Every new share is a claim that the AI infrastructure will eventually earn its cost, and Alibaba's cloud growth now has to make good on that. So far, that growth is accelerating. It will need to keep doing exactly that.

Bank Hapoalim BM trimmed its stake in shares of Intel Corporation (NASDAQ:INTC – Free Report) by 42.3% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 26,450 shares of the chip maker’s stock after selling 19,411 shares during the quarter. Intel makes up 0.2% of Bank Hapoalim BM’s holdings, making the stock its 27th biggest holding. Bank Hapoalim BM’s holdings in Intel were worth $3,693,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Sivia Capital Partners LLC grew its stake in shares of Intel by 271.7% in the 2nd quarter. Sivia Capital Partners LLC now owns 34,201 shares of the chip maker’s stock worth $766,000 after acquiring an additional 25,001 shares in the last quarter. United Bank bought a new stake in shares of Intel in the second quarter valued at $205,000. Gamco Investors INC. ET AL raised its position in shares of Intel by 12.3% in the second quarter. Gamco Investors INC. ET AL now owns 13,737 shares of the chip maker’s stock valued at $308,000 after purchasing an additional 1,508 shares during the period. NewEdge Advisors LLC raised its position in shares of Intel by 29.6% in the second quarter. NewEdge Advisors LLC now owns 158,277 shares of the chip maker’s stock valued at $3,545,000 after purchasing an additional 36,116 shares during the period. Finally, Sei Investments Co. raised its stake in shares of Intel by 9.9% during the 2nd quarter. Sei Investments Co. now owns 828,352 shares of the chip maker’s stock valued at $18,556,000 after purchasing an additional 74,838 shares during the period. 64.53% of the stock is currently owned by institutional investors.

Intel Price Performance Shares of NASDAQ INTC opened at $90.07 on Monday. Intel Corporation has a 1 year low of $23.65 and a 1 year high of $142.35. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.60 and a quick ratio of 1.25. The company’s 50-day moving average is $108.43 and its 200 day moving average is $85.25. The stock has a market capitalization of $454.31 billion, a P/E ratio of -42.69 and a beta of 2.22.

Intel (NASDAQ:INTC – Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The chip maker reported $0.42 EPS for the quarter, topping the consensus estimate of $0.21 by $0.21. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The business had revenue of $16.13 billion during the quarter, compared to analyst estimates of $14.43 billion. During the same period last year, the business posted ($0.10) earnings per share. Intel’s quarterly revenue was up 25.2% compared to the same quarter last year. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. On average, sell-side analysts expect that Intel Corporation will post 1.01 earnings per share for the current year. Key Stories Impacting Intel Here are the key news stories impacting Intel this week:

Positive Sentiment: Institutional buying provides support: Tiger Global reportedly increased its Intel position during the second quarter, adding to recent bullish interest in the company’s AI, data-center, and foundry businesses. Tiger Global Added to Its Position in Intel in Q2 Positive Sentiment: CEO purchase signals confidence: Intel CEO Lip-Bu Tan reportedly bought another 105,000 shares, a potentially favorable signal regarding management’s view of the company’s turnaround and long-term prospects. CEO Lip-Bu Tan Just Bought Another 105,000 Shares of Intel Stock Positive Sentiment: Operating momentum remains a potential catalyst: Intel’s latest reported quarter exceeded consensus EPS and revenue estimates, with revenue up 25.2% year over year. Coverage also points to a growing role for Intel in AI hardware and data-center demand. Neutral Sentiment: Government investment remains under scrutiny: Intel’s shares slipped as Commerce Secretary Howard Lutnick defended the U.S. government’s purchase of roughly 10% of the company. The investment could improve strategic and financial support, but its unusual structure has prompted investor uncertainty. Intel Stock Slips as Howard Lutnick Defends Intel Deal Negative Sentiment: Potential dilution weighs on sentiment: Reports that Intel is pursuing a stock offering of approximately $15 billion raise concerns about shareholder dilution, even if the proceeds are intended to fund expansion and capitalize on AI demand. Intel Embarks on $15 Billion Stock Offering Negative Sentiment: High-profile selling reinforces profit-taking concerns: Stanley Druckenmiller’s Duquesne Family Office reportedly exited its Intel position in the second quarter, selling about 411,400 shares while reallocating capital to other AI and robotics opportunities. Druckenmiller Dumped Micron, Intel and Broadcom Negative Sentiment: Analyst caution and valuation risk persist: Intel carries an average analyst rating of “Hold,” while some coverage argues that Nvidia and AMD offer better risk-adjusted upside. Investors remain concerned that Intel’s recent rally has priced in much of the turnaround before sustained profitability is established. Analyst Ratings Changes Several research analysts have recently weighed in on the stock. Wedbush upped their price target on shares of Intel from $60.00 to $98.00 and gave the stock a “neutral” rating in a report on Friday, July 24th. Susquehanna increased their price target on shares of Intel from $80.00 to $115.00 and gave the company a “neutral” rating in a research report on Thursday, July 16th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of Intel in a research note on Tuesday, July 21st. JPMorgan Chase & Co. lifted their target price on shares of Intel from $45.00 to $85.00 and gave the stock an “underweight” rating in a research note on Friday, July 24th. Finally, Rosenblatt Securities increased their price objective on Intel from $65.00 to $80.00 and gave the stock a “sell” rating in a report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, thirty-one have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $107.46.

Check Out Our Latest Research Report on INTC

Insider Buying and Selling at Intel In other news, CEO Lip Bu Tan purchased 105,263 shares of Intel stock in a transaction that occurred on Tuesday, August 11th. The shares were bought at an average cost of $95.00 per share, with a total value of $9,999,985.00. Following the completion of the purchase, the chief executive officer directly owned 1,314,669 shares in the company, valued at approximately $124,893,555. This trade represents a 8.70% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.05% of the stock is owned by corporate insiders.

About Intel (Free Report)

Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.

Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.

See Also Five stocks we like better than Intel VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding INTC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Intel Corporation (NASDAQ:INTC – Free Report).

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Intel (INTC -2.24%) set out to raise $15 billion on Aug. 10. Demand was strong enough that the offering priced at $20 billion the same day -- 210.5 million new shares at $95 each.

The deal then grew once more. Underwriters exercised their option to purchase additional shares in full on Aug. 11, taking the total to about 242 million shares and about $23 billion in all.

Eleven days later, the stock trades below the price all of that money paid. Shares closed Thursday at $92.13, their second straight finish under $93.

What does it mean when a stock slips below a price that $23 billion of institutional demand just set?

Image source: Intel.

The deal kept growingThe mechanics of the deal show how much appetite there was. Intel priced 210,526,315 shares at $95, upsizing the offering from the $15 billion it had announced hours earlier. It also granted underwriters a 30-day option on about 31.6 million additional shares, and they took every one of them. The offering was set to close on Aug. 12.

Notably, $95 wasn't a fire-sale price. Intel's stock last traded at $97.52 on the day the deal was announced, so buyers paid only about a 3% discount to the market.

In other words, this wasn't a company shaking loose whatever cash it could get. Institutions lined up to pay nearly the market price, for far more shares than Intel originally set out to sell.

Intel says demand is the reasonWhy raise the money at all? Intel's announcement pointed at its customers. The company said they continue to signal "a strong and sustainable demand environment, driven by unprecedented investment in AI compute," and that the offering would let it pursue growth opportunities "while maintaining a strong balance sheet and its commitment to an investment-grade rating."

The stated use of proceeds is broad. Intel says the money is for general corporate purposes, a category that may include capital expenditures and working capital.

That flexibility is likely the point. Artificial intelligence (AI) demand is pulling Intel toward years of heavy spending, and the company chose to fund the next stretch of it with stock instead of debt.

The offering language also leans on opportunity, not distress. That framing is easier to defend when the stock sits above the offer price than when it sits below it.

Below the offer priceThe change came fast. Shares closed above $103 as recently as Monday. Then came three straight down sessions: $96.69 on Tuesday, $92.80 on Wednesday, and $92.13 on Thursday. And shares still sit near that last level as of this writing.

The last two closes sit below $93, nearly 3% under the offer price. Anyone from the deal still holding those shares is underwater on them.

Of course, a break like this isn't automatically a verdict on the company. New shares take time to digest, and the slide came during a rough stretch for chip stocks broadly. A 3% gap could close in a single good session.

Today's Change

(

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90.07

But I think the gap still tells you something. On Aug. 10, $95 was the price at which an enormous amount of professional money wanted in -- enough to grow the deal by more than half over its original size. Today the market will sell anyone the same shares for less, and buyers aren't stepping up to close the difference.

What would move the stock back through $95 is the same evidence that justified the raise. Intel has told investors that unprecedented AI demand is coming its way, and the latest results back the claim. Revenue grew 25% year over year to $16.1 billion last quarter, up from $12.9 billion a year earlier, and management's third-quarter forecast of $15.8 billion to $16.8 billion holds revenue near that new level. More quarters in that direction, with the new $23 billion getting spent productively along the way, would arguably get the stock there on their own. But those quarters haven't been reported yet, and the spending is only beginning.

The buyers of 242 million new shares were willing to pay $95. But the market wants more proof before it agrees -- a reasonable ask.

Key Takeaways Intel's CCPG revenues rose 13% to $8.88 billion in the second quarter of 2026.AI PC revenues surged 26% sequentially, with more than 400 Core Ultra Series 3 designs.Edge AI and robotics reached 10% of CCPG revenues, helping diversify growth beyond PCs. Intel Corporation (INTC - Free Report) is witnessing strong momentum in the Client Computing and Physical AI Group (CCPG). In the second quarter of 2026, revenues increased to $8.88 billion from $7.87 billion a year ago, up 13% year over year.

Growing adoption of AI PCs is one of the major growth drivers in the near term. The company reported that AI PC revenues surged 26% sequentially in the second quarter. INTC has significantly expanded the reach of its Core Ultra Series 3 portfolio, with more than 400 designs across consumer and commercial systems. Such a broad design pipeline gives Intel greater exposure to different PC categories and price points.

Intel is venturing beyond traditional PCs into edge AI, robotics and Physical AI. Edge deployments represent approximately 10% of CCPG revenues in the second quarter. More than 130 customers are adopting or testing Intel's Series 3 processors for edge AI and robotics applications. The emerging business could diversify CCPG’s revenue base and reduce its exposure to fluctuations in PC demand. Intel expects PC consumption to decline at a low-double-digit percentage rate in 2026 due to high memory prices and other constraints. Against this backdrop, Edge AI, robotics and Physical AI could provide Intel with additional revenue opportunities beyond the traditional PC market.

Enterprise AI adoption is also creating opportunities for Intel beyond processor upgrades. Intel highlighted strong momentum for its vPro manageability and security software. Intel’s integrated Arc graphics solutions have gained market adoption. The company reported more than 40 design wins across creator, workstation, commercial and gaming systems.

Hence, CCPG's growth story is not solely dependent on the PC market. While AI PC adoption is likely to remain a key near-term growth catalyst, Intel is also building new avenues through Edge AI, Physical AI, gaming and graphics.

How Are Competitors Faring?Intel faces strong competition from Advanced Micro Devices (AMD - Free Report) and Qualcomm Incorporated (QCOM - Free Report) across the AI PC and edge-computing markets. AMD is witnessing solid momentum in the client computing business. In the second quarter of 2026, AMD reported $3.1 billion in client revenues, up 23% year over year. The growth is backed by strong demand for Ryzen processors.

AMD is also actively expanding the Ryzen AI portfolio across commercial PCs and edge applications, and it is venturing into industrial automation and robotics. This could pose a major threat to Intel’s CCPG expansion initiatives.

Qualcomm is aiming to expand its presence in the AI PC market with its Snapdragon X2 platform. Management said its 2026 Snapdragon X2 PC platforms are in production and positioned to enable always-on agentic experiences, supported by a Hexagon NPU delivering up to 85 TOPS. Qualcomm's Dragonwing platforms also position the company to compete with Intel in the industrial edge AI market.

INTC’s Price Performance, Valuation and EstimatesIntel has skyrocketed 310.7% over the past year compared with the industry’s growth of 34.8%.

Image Source: Zacks Investment Research

Going by the price-to-book ratio, the company's shares currently trade at 4.73, lower than the industry average of 23.43.

Image Source: Zacks Investment Research

Earnings estimates for INTC for 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

Intel stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Calamos Advisors LLC increased its holdings in Intel Corporation (NASDAQ:INTC – Free Report) by 30.1% during the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,268,305 shares of the chip maker’s stock after buying an additional 293,357 shares during the period. Intel accounts for approximately 0.6% of Calamos Advisors LLC’s portfolio, making the stock its 26th largest holding. Calamos Advisors LLC’s holdings in Intel were worth $177,093,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in INTC. Financially Speaking Inc increased its stake in Intel by 69.2% in the 4th quarter. Financially Speaking Inc now owns 682 shares of the chip maker’s stock worth $25,000 after acquiring an additional 279 shares during the last quarter. Financial Life Planners purchased a new stake in shares of Intel in the 1st quarter valued at about $25,000. Swiss RE Ltd. bought a new stake in shares of Intel during the 4th quarter valued at about $29,000. Osbon Capital Management LLC bought a new stake in shares of Intel during the 4th quarter valued at about $30,000. Finally, Beaird Harris Wealth Management LLC grew its holdings in shares of Intel by 3,185.7% during the second quarter. Beaird Harris Wealth Management LLC now owns 230 shares of the chip maker’s stock worth $32,000 after purchasing an additional 223 shares in the last quarter. Institutional investors own 64.53% of the company’s stock.

Intel Stock Down 6.6% Shares of NASDAQ:INTC opened at $96.68 on Wednesday. The stock’s 50-day moving average price is $109.90 and its 200-day moving average price is $84.33. Intel Corporation has a 12-month low of $22.77 and a 12-month high of $142.35. The stock has a market capitalization of $487.65 billion, a P/E ratio of -45.82 and a beta of 2.22. The company has a current ratio of 1.60, a quick ratio of 1.25 and a debt-to-equity ratio of 0.47.

Intel (NASDAQ:INTC – Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The chip maker reported $0.42 EPS for the quarter, topping the consensus estimate of $0.21 by $0.21. Intel had a positive return on equity of 2.62% and a negative net margin of 19.79%.The firm had revenue of $16.13 billion for the quarter, compared to the consensus estimate of $14.43 billion. During the same quarter in the previous year, the business earned ($0.10) earnings per share. The company’s quarterly revenue was up 25.2% on a year-over-year basis. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. On average, equities analysts anticipate that Intel Corporation will post 1.01 earnings per share for the current year. Insider Buying and Selling In related news, CEO Lip Bu Tan purchased 105,263 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were acquired at an average cost of $95.00 per share, with a total value of $9,999,985.00. Following the purchase, the chief executive officer directly owned 1,314,669 shares of the company’s stock, valued at approximately $124,893,555. This trade represents a 8.70% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 0.05% of the stock is owned by company insiders.

Key Stories Impacting Intel Here are the key news stories impacting Intel this week:

Positive Sentiment: CEO Lip-Bu Tan purchased approximately 105,263 Intel shares for $10 million at $95 each. The purchase signals management confidence in Intel’s turnaround, although it was not enough to offset broader selling pressure. CEO Lip-Bu Tan Just Bought Another 105,000 Shares of Intel Stock Positive Sentiment: Recent institutional filings showed substantial accumulation of Intel shares by Invesco, JPMorgan, FMR and Capital International. SoftBank also reported holding about 86.9 million shares, while a separate filing indicated Nvidia held nearly $30 billion of Intel stock. These positions support the long-term turnaround and foundry narrative, but they may reflect holdings as of June 30 rather than current activity. SoftBank Group put 67% of U.S. portfolio into Intel stock Neutral Sentiment: Intel announced plans to participate in an upcoming investor conference. The event could provide updates on manufacturing, foundry demand and AI strategy, but the announcement itself contained no new financial guidance. Intel Corporation to Participate in Upcoming Investor Conference Negative Sentiment: UBS cut its Intel price target to $112. The revision reinforced valuation concerns after the stock’s sharp yearlong rally, particularly because Intel remains loss-making and its turnaround depends on future foundry and AI execution. Intel Stock Plunges 7% as UBS Cuts Price Target to $112 Negative Sentiment: Qualcomm’s latest Snapdragon testing highlighted improving performance and power efficiency in an alternative processor platform, raising concerns about Intel’s competitiveness in PCs and other chip markets. Intel Stock Plummets 7% After Snapdragon Testing Negative Sentiment: Intel fell alongside AMD and other AI hardware names as rising borrowing costs, inflation and oil prices pressured high-growth technology stocks. Investors also questioned whether the pace of AI infrastructure spending can continue, while a major chip peer’s less-optimistic AI outlook weighed on the entire sector. Why are Intel and AMD stocks tanking up to 7% today? Negative Sentiment: Ongoing geopolitical tensions, including the Iran conflict, added to market-wide risk aversion and amplified the selloff in cyclical technology stocks. Why Intel Stock Is Falling Today Wall Street Analysts Forecast Growth INTC has been the topic of several research analyst reports. Cantor Fitzgerald decreased their price objective on shares of Intel from $150.00 to $125.00 and set a “neutral” rating on the stock in a research report on Friday, July 24th. Rosenblatt Securities lifted their target price on shares of Intel from $65.00 to $80.00 and gave the company a “sell” rating in a research report on Friday, July 24th. Bank of America cut their price target on shares of Intel from $160.00 to $145.00 and set a “buy” rating for the company in a research note on Wednesday, August 12th. Stifel Nicolaus decreased their price target on shares of Intel from $120.00 to $110.00 and set a “hold” rating on the stock in a report on Friday, July 24th. Finally, BTIG Research upgraded shares of Intel from a “neutral” rating to a “buy” rating in a research report on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, thirty-two have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $107.46.

Get Our Latest Report on INTC

About Intel (Free Report)

Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.

Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.

Further Reading Five stocks we like better than Intel The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond

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Shares of Intel (NASDAQ:INTC | INTC Price Prediction) are down 4% to $98.60 Tuesday morning, sliding with the broader chip group as rising Treasury yields pressure high-multiple technology names. Advanced Micro Devices (NASDAQ:AMD) stock is down 4% to $487.89. NVIDIA (NASDAQ:NVDA) stock is down 2% to $220.22.

The pullback lands on top of enormous 2026 runs. Through Monday’s close, Intel stock was up 180% year to date (YTD), AMD stock was up 136% YTD, and NVIDIA stock had gained 21% YTD. The bigger story sitting under Tuesday’s session is what quarterly institutional filings disclosed about who was crowding into Intel as of June 30.

Concentrated Chip Bets Revealed in 13F Filings
Quarterly 13F filings are point-in-time snapshots as of June 30, disclosed roughly 45 days after quarter close. They cover only disclosed U.S. equity holdings, not entire balance sheets, and the positions may already have changed. NVIDIA disclosed 214,776,632 Intel shares valued at $29,989,261,126, representing 47.27% of its disclosed equity portfolio.

That’s an extraordinary single-name weight for any disclosed institutional book, and the striking detail is that Intel competes directly with NVIDIA in parts of the data center market. Because 13F filings exclude index managers and non-U.S. holdings, this figure should not be read as a claim about NVIDIA’s overall capital allocation or Intel’s largest shareholder.

The widely covered angle involved SoftBank Group, listed in Tokyo. SoftBank disclosed 86,956,522 Intel shares valued at $12,141,739,167, representing 66.81% of its disclosed U.S. equity portfolio. This builds on SoftBank’s $2 billion strategic investment in Intel that closed in the third quarter of 2025, and SoftBank reported first-quarter fiscal 2026 net income of 347.3 billion yen, driven by a 1.3 trillion yen gain on Intel stock.

Coatue Management disclosed a new Intel position of 12,084,027 shares valued at $1,687,292,689, representing 3.47% of its portfolio. Tiger Global Management added to its Intel position, while D. E. Shaw, Renaissance Technologies and Point72 Asset Management each trimmed their Intel positions. On the bearish side, Millennium Management disclosed a put position on 7,398,900 underlying Intel shares as of June 30, which is a bearish bet rather than ownership.

Peer Read: Advanced Micro Devices and NVIDIA
Advanced Micro Devices is Intel’s direct competitor in processors, and AMD stock is tracking Intel lower on the day. NVIDIA plays a dual role in Tuesday’s story as both a data center rival to Intel and the holder of the largest disclosed Intel position in the June 30 filings.

NVIDIA stock is falling less than Intel and AMD on the session and carries a much smaller 2026 gain, which is consistent with the most-appreciated names getting hit hardest in a rate-driven pullback. Intel’s fundamentals still look supportive: second-quarter fiscal 2026 revenue was $16.128 billion, a 25.4% increase year over year, with the Data Center and AI segment rising 59% to $6.262 billion (the same buildout is lifting suppliers beyond the chipmakers, which we mapped in a report here: 7 Stocks Powering the AI Boom). Intel guided third-quarter 2026 revenue to a range of $15.8 billion to $16.8 billion.

Sector ETF Tracks the Move
The iShares Semiconductor ETF (NASDAQ:SOXX) is down 4% to $537.48, matching Intel’s percentage decline on the day. Through Monday’s close, the ETF was up 86% YTD.

The fund is a sector product carrying concentration risk relative to the broad market, and it is not leveraged. The parallel move across Intel, AMD and the ETF signals Tuesday’s action is a sector-wide rate story rather than anything specific to Intel.

What to Watch
The filings snapshot is backward-looking. The open questions from here are whether the next round of quarterly filings shows these concentrated Intel positions maintained, reduced or exited, and whether yields keep pressuring the group.

Investors could look for signs that Intel’s third-quarter results land inside the guided range. Traders may want to keep an eye on whether the semiconductor ETF holds recent support as the session progresses.

Contact [email protected] for any questions or corrections.

Ethic Inc. increased its holdings in shares of Intel Corporation (NASDAQ:INTC – Free Report) by 5.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 498,001 shares of the chip maker’s stock after acquiring an additional 27,839 shares during the quarter. Intel makes up approximately 0.9% of Ethic Inc.’s holdings, making the stock its 16th biggest holding. Ethic Inc.’s holdings in Intel were worth $69,536,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently bought and sold shares of the business. Vanguard Group Inc. grew its position in shares of Intel by 3.5% during the fourth quarter. Vanguard Group Inc. now owns 404,522,308 shares of the chip maker’s stock worth $14,926,873,000 after acquiring an additional 13,692,624 shares during the last quarter. State Street Corp increased its holdings in shares of Intel by 2.8% in the 4th quarter. State Street Corp now owns 208,536,784 shares of the chip maker’s stock worth $7,695,007,000 after acquiring an additional 5,714,400 shares during the period. Capital World Investors lifted its position in Intel by 20.3% in the 4th quarter. Capital World Investors now owns 104,060,268 shares of the chip maker’s stock valued at $3,839,833,000 after purchasing an additional 17,557,147 shares during the last quarter. Geode Capital Management LLC lifted its position in Intel by 3.2% in the 4th quarter. Geode Capital Management LLC now owns 101,931,512 shares of the chip maker’s stock valued at $3,744,406,000 after purchasing an additional 3,124,798 shares during the last quarter. Finally, Morgan Stanley boosted its stake in Intel by 20.4% during the 4th quarter. Morgan Stanley now owns 65,249,269 shares of the chip maker’s stock valued at $2,407,698,000 after purchasing an additional 11,056,090 shares during the period. Institutional investors own 64.53% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities research analysts have recently weighed in on INTC shares. Evercore set a $95.00 price target on Intel in a report on Friday, April 24th. Royal Bank Of Canada reissued a “sector perform” rating on shares of Intel in a report on Tuesday, July 21st. Melius Research set a $150.00 target price on Intel in a research report on Monday, May 18th. BNP Paribas Exane raised Intel from an “underperform” rating to a “buy” rating and set a $60.00 target price on the stock in a research note on Tuesday, April 21st. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $110.00 price target on shares of Intel in a research report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, thirty-two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $107.46.

View Our Latest Report on Intel Intel Price Performance Shares of NASDAQ INTC opened at $103.49 on Tuesday. Intel Corporation has a twelve month low of $22.77 and a twelve month high of $142.35. The company has a current ratio of 1.60, a quick ratio of 1.25 and a debt-to-equity ratio of 0.47. The firm has a 50-day moving average of $110.12 and a two-hundred day moving average of $83.99. The company has a market capitalization of $522.00 billion, a price-to-earnings ratio of -49.05 and a beta of 2.22.

Intel (NASDAQ:INTC – Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The chip maker reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.21. Intel had a negative net margin of 19.79% and a positive return on equity of 2.62%. The company had revenue of $16.13 billion for the quarter, compared to analysts’ expectations of $14.43 billion. During the same quarter in the previous year, the company posted ($0.10) EPS. The business’s revenue was up 25.2% compared to the same quarter last year. Intel has set its Q3 2026 guidance at 0.380-0.380 EPS. As a group, analysts expect that Intel Corporation will post 1.01 earnings per share for the current fiscal year.

Intel News Roundup Here are the key news stories impacting Intel this week:

Positive Sentiment: CEO Lip-Bu Tan disclosed a purchase of 105,263 Intel shares at $95 each, worth approximately $10 million. His investment is being viewed as a strong vote of confidence in Intel’s recovery strategy. Intel CEO insider purchase Positive Sentiment: Intel’s recently upsized equity offering is expected to provide roughly $20 billion to $23 billion for investments in manufacturing, AI and the foundry business. Reports of improving yields at GlobalFoundries and broader customer interest support the possibility of progress in Intel Foundry. Intel’s capital raise and foundry progress Positive Sentiment: SoftBank Group reportedly allocated 66.81% of its disclosed U.S. equity portfolio to Intel, potentially reinforcing the view that the chipmaker could benefit from the long-term AI infrastructure buildout. SoftBank’s Intel investment Positive Sentiment: Intel participated in a broader rally across chip and memory stocks as investors continued to favor companies exposed to strong AI spending and semiconductor infrastructure demand. Semiconductor stock market moves Neutral Sentiment: CEO Tan said Intel is exploring new memory architectures that bring memory and processors closer together. The initiative could expand Intel’s AI opportunity, but it is still exploratory and offers no near-term revenue assurance. Intel explores memory architectures Neutral Sentiment: Institutional signals are mixed: some reports describe new or enlarged semiconductor positions, while Stanley Druckenmiller’s fund was reported to have sold Intel in the second quarter. Druckenmiller’s Intel position Negative Sentiment: The equity raise strengthens Intel’s balance sheet but dilutes existing shareholders and raises the execution burden for the turnaround. Intel’s secondary share sale Negative Sentiment: At roughly 62 times expected next year’s earnings, Intel’s valuation assumes substantial future profitability even though the company reportedly lost about $11 billion over the past year, much of it noncash. Intel valuation and recent losses Insider Transactions at Intel In other Intel news, CEO Lip Bu Tan purchased 105,263 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were purchased at an average price of $95.00 per share, for a total transaction of $9,999,985.00. Following the completion of the transaction, the chief executive officer owned 1,314,669 shares in the company, valued at $124,893,555. This represents a 8.70% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.05% of the company’s stock.

Intel Company Profile (Free Report)

Intel Corporation, founded in 1968 by Robert Noyce and Gordon E. Moore and headquartered in Santa Clara, California, is a leading global designer and manufacturer of semiconductor products. The company is historically notable for introducing the first commercial microprocessor and for driving the x86 architecture that underpins many personal computers and servers. Intel’s core business spans the design, fabrication and marketing of processors, chipsets and related components for a wide range of computing applications.

Intel’s product portfolio includes client and mobile processors marketed under brands such as Intel Core and Pentium, as well as high-performance Xeon processors for data centers and cloud infrastructure.

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Intel (INTC +0.97%) carries one of the stranger price tags in the market right now. The chipmaker's net loss over the past year comes to about $11.3 billion. Its stock, meanwhile, trades at about $105 as of this writing, up more than 350% from its 52-week low of $22.78. And it costs about 62 times what the company is expected to earn on an adjusted basis over the year ahead.

A company losing billions doesn't usually command a $550 billion market value and a premium growth multiple at the same time. The market has decided Intel's losses aren't what they appear, and on that point, I think the market is right.

Whether the stock is worth that price is a different matter.

Image source: Intel.

Charges, not cashThe second quarter shows what the red ink is made of. Intel reported an $11.0 billion net loss for a quarter in which revenue climbed 25% from a year earlier to $16.1 billion.

Nearly all of the loss traces to a $12.5 billion non-cash, mark-to-market charge on shares Intel holds in escrow for the U.S. government under its CHIPS Act agreement. The first quarter followed the same pattern, with a $3.7 billion net loss that included a $3.9 billion goodwill impairment and another $1.1 billion escrow charge.

Set those items aside, and Intel is already profitable. Non-GAAP (adjusted) net income was $1.5 billion in the first quarter and $2.2 billion in the second.

Gross margin is climbing, too: 39.4% in the first quarter, 40.4% in the second, and management guided to 41% for the third -- a steady expansion. And revenue growth accelerated, from 7% year over year in the first quarter to 25% in the second. Management's own forecast even calls for positive earnings of $0.31 per share in the third quarter on a GAAP basis.

In other words, the swing from red ink to black is already underway.

What is 62 times buying?The loss, then, is mostly an accounting story. The stock's valuation is harder to explain away.

At about $105 a share, Intel trades at roughly 62 times its projected adjusted earnings for the year ahead -- projections that work out to only about $1.70 per share from a company valued at $550 billion. And management's own third-quarter guidance implies something similar. Annualize its guided $0.38 of adjusted earnings per share, and shares trade at roughly 70 times the company's current earnings pace.

Demand isn't the concern. CEO Lip-Bu Tan said in the company's second-quarter earnings release that "AI is driving unprecedented demand for compute," and the numbers back him up. Revenue in Intel's data center and artificial intelligence (AI) segment rose 59% year over year to $6.3 billion last quarter.

Growth like that could well continue. After all, management says supply, not demand, is what limits the business right now.

But growth that has already shown up doesn't get a stock to 62 times earnings on its own. The rest of the price rests on something that hasn't happened yet.

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The $8 billion swingThat something is the foundry. Intel's products businesses already earn plenty. The client computing and physical AI group posted $2.3 billion of operating profit last quarter, and the data center and AI group earned $2.5 billion. Intel Foundry, the chip-manufacturing arm, gave $2.1 billion of that back -- a loss pace of more than $8 billion a year.

Chief Financial Officer Dave Zinsner said last year that the foundry was on track to break even sometime in 2027, and the losses are narrowing, down from $2.4 billion a quarter earlier. Ending them would roughly double the company's current adjusted earnings pace all by itself. Much of that swing, I'd argue, is already baked into the stock's price.

However, the foundry is still overwhelmingly Intel's own customer. External customers supplied $293 million of the unit's $5.8 billion in second-quarter revenue. Intel 14A, the manufacturing process meant to win outside chip designers at scale, isn't scheduled for high-volume production until 2028, so meaningful outside revenue may be a couple of years away.

And the spending comes first. Intel raised its 2026 capital spending outlook to more than $20 billion, expects significantly higher spending in 2027, and sold $20 billion of new stock at $95 a share this month for general corporate purposes.

The turnaround looks impressive. Revenue is accelerating, margins are expanding, and the adjusted bottom line has been positive for two quarters running.

My problem is the price. A 62-times-forward multiple leaves the stock priced for a foundry payoff that still depends on customers who mostly haven't signed yet. Even a company executing this well can be an expensive stock, and I think Intel is one right now.

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Insider buying tends to cluster in one of two places: distressed stocks trading for pennies on the dollar, or beaten-down names an executive believes the market has mispriced. It rarely shows up in a stock that has already tripled. Yet last Tuesday, Intel (NASDAQ:INTC | INTC Price Prediction) CEO Lip-Bu Tan did exactly that, purchasing shares in the open market after his company’s stock had already run higher for months. 

According to a Form 4 he filed with the Securities and Exchange Commission, Tan bought 105,263 shares at $95.00 apiece — a $10 million bet placed through a family trust, and one that says something specific about how Intel’s own chief executive sees the road ahead.

Why This Purchase Is Different
Executives receive stock constantly through option grants, restricted stock units, and vesting schedules. None of that requires conviction — it’s compensation, not a decision. What Tan did was pull $10 million out of his own pocket and put it into Intel stock at the same $95 price ordinary investors paid in the company’s concurrent $20 billion secondary offering.

That distinction matters. As legendary Fidelity manager Peter Lynch put it, insiders can sell their shares for any number of reasons — a new house, a divorce, diversification, taxes — but they only buy for one: they think the stock is going higher. Tan wasn’t required to participate in this offering at all. He chose to, at full market price, with no discount and no guarantee.

Most insiders sell at the peak. Lip-Bu Tan just dropped $10 million of his own cash to double down on Intel’s massive AI-fueled explosion.

A Stake That’s Grown to 1.3 Million Shares
This purchase wasn’t an isolated gesture. Combined with his existing holdings, Tan’s beneficial ownership now stands at roughly 1.3 million shares — 1,314,669 held indirectly through the family trust, another 16,471 held directly, and 500 shares through his 401(k), per the same SEC filing. That’s a personal stake worth well over $130 million at current prices, all riding on Intel’s turnaround succeeding.

The timing adds weight. Intel shares are up approximately 177% in 2026 and roughly 329% over the trailing 12 months. The breakout began in April, when Intel’s Foundry unit announced manufacturing partnerships with Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOG) for chip manufacturing and processes. Those deals landed alongside a first-quarter earnings report that demolished expectations — revenue of $13.58 billion against a consensus near $12.5 billion, and non-GAAP EPS of $0.29 versus an estimate of roughly a penny. Shares gained 114% that month alone.

Why Tan May Think Intel Isn’t Finished Climbing
The momentum hasn’t faded. Intel’s second-quarter revenue reached $16.13 billion, up 25% year-over-year, and the company guided third-quarter revenue to $15.8 billion to $16.8 billion, ahead of the FactSet consensus near $15.1 billion at the time. Data Center and AI revenue grew 22% year over year in Q1 alone, and management has said AI-linked businesses now make up roughly 60% of total revenue.

Here’s how that growth stacks up against the chip sector’s other momentum names, based on year-to-date performance and trailing P/E ratios as of mid-August:

Company
2026 YTD Return
Trailing P/E

Intel
177%
Not meaningful (net loss)

Advanced Micro Devices (NASDAQ:AMD)
140%
131x

Broadcom (NASDAQ:AVGO)
13.5%
65x

Nvidia (NASDAQ:NVDA)
21%
34x

Intel still isn’t consistently profitable on a GAAP basis, which is exactly why a P/E comparison breaks down and why Tan’s purchase carries more signal than a valuation multiple could. He’s betting on execution — 18A foundry ramp, AI data center demand, and a $20 billion capital raise funding both — not on a chart.

Key Takeaway
Granted, one CEO’s purchase doesn’t guarantee a stock keeps climbing, and Intel remains a turnaround story with real execution risk on foundry yields and AI competition from Nvidia and AMD. That said, a sitting CEO writing a $10 million personal check at the same price the public paid, on top of an already-sizable stake, is the kind of signal Lynch would have flagged immediately. 

For investors who believe in the AI-driven data center thesis but have hesitated on Intel specifically, Tan’s own money says he’s not waiting for a pullback.

Contact [email protected] for any questions or corrections.

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Jim Cramer put Intel (NASDAQ:INTC | INTC Price Prediction) back in the spotlight this afternoon, telling followers on X that the chipmaker will be a “major focus name” on the CNBC Investing Club segment, with specific attention on CEO Lip-Bu Tan. The post landed Wednesday, August 12, 2026, teeing up Thursday’s Club discussion and directing retail investor attention toward one of the most closely followed turnaround stories in semiconductors.

Cramer has been building this narrative for months. On his May 18, 2026 Mad Money broadcast, he told viewers that when Tan took the CEO job, the stock was “sitting at around 20 bucks.” He went on to describe the recovery “one of the greatest turnarounds I’ve ever seen.” By June 30, he was calling Intel “currently my favorite stock.”

The Turnaround by the Numbers Intel shares changed hands at $102.15 as of August 12, 2026, following a 4.6% bounce in the session off a recent pullback. The longer lookback tells the real story: shares are up 176.8% year to date and 368.3% over the past year, climbing from a 52-week low of $21.36. Market cap now sits near $515.2 billion.

The rally has been powered by operating results. Intel’s Q2 2026 revenue hit $16.128 billion, up 25.42% year over year and 11.64% above consensus. Non-GAAP EPS came in at $0.42 against a $0.2166 estimate, a 93.1% beat. In the Q2 earnings release filed with the SEC, Tan called it “our strongest revenue growth in more than 15 years.”

Segment mix is where the AI thesis becomes firm. Data Center and AI (DCAI) revenue jumped 59% year over year to $6.262 billion. Client Computing and Physical AI came in at $8.877 billion, up 13%. Intel Foundry revenue reached $5.765 billion, up 31%, though the segment still ran a $2.1 billion operating loss for the quarter.

What Tan Is Building On the earnings call, Tan framed Intel’s position around hard-core AI compute demand, saying “strong demand for our products continues to outpace our growing supply” as the company notched its seventh consecutive quarter of beating financial expectations. He also flagged the process roadmap: Intel 18A output ran roughly 25% above target with yields tracking ahead of expectations, and the company committed to a high-volume ramp of Intel 14A in 2028.

Intel has also received two high-profile votes of confidence. NVIDIA (NASDAQ: NVDA) and the U.S. government took stakes last year, investments Cramer has repeatedly pointed to as proof the turnaround is gaining traction. Intel plans to spend more than $20 billion on capex in 2026 and “significantly” more in 2027, boosting its U.S. investment since 2021 closer to $100 billion.

 What Wall Street Sees While Cramer is amped up, the Street remains cautious. Analyst consensus rating skews neutral, with 31 Hold ratings, 12 Buys, 2 Strong Buys, 2 Sells and 1 Strong Sell. The consensus price target sits at $114.05, implying modest upside from current levels. Valuation reflects the recovery: shares trade at a forward P/E of 77 and price-to-sales of 8.64, though the PEG ratio of 0.501 suggests growth is doing some of the work.

What to Watch Next Intel guided Q3 2026 revenue to between $15.8 billion and $16.8 billion, non-GAAP EPS of $0.38, and non-GAAP gross margin near 42%. The market has been unforgiving on earnings reports: even after the Q2 beat, shares fell 7.89% on the earnings day, and INTC is down 7.01% over the past month. Foundry losses, U.S. government equity ownership, and competitive pressure from AMD (NASDAQ:AMD) and ARM-based server designs remain the near-term overhangs Cramer’s Club audience will likely hear discussed on the risk/reward side.

Contact [email protected] for any questions or corrections.

Key Takeaways Intel's Q2 2026 revenue rose 25% to $16.1B, with DCAI sales surging 59% to $6.3B.AI PC revenue climbed 26% sequentially and made up roughly two-thirds of Intel's client revenue.Intel is boosting wafer output and 18A production, while export limits and pricing pressure weigh on margins. Intel Corporation (INTC - Free Report) appears to be gaining momentum, with improving revenues highlighting a significant turnaround in the chipmaker’s fortunes. Strength across the data center and client computing businesses, growing AI-related demand and improving manufacturing execution are helping revive the company’s growth trajectory.

The company reported second-quarter 2026 revenues of $16.1 billion, up 25% year over year. The solid top-line improvement reflects strengthening demand across Intel’s product portfolio and indicates that its restructuring and technology investments are beginning to bear fruit.

Image Source: Zacks Investment Research

Data Center Growth Remains a Key CatalystIntel’s Data Center and AI (DCAI) business is emerging as a major growth driver. DCAI revenues surged 59% year over year to $6.3 billion in the second quarter, benefiting from healthy hyperscale and enterprise demand.

The proliferation of generative AI applications is driving significant investments in data center infrastructure. Although GPUs remain at the center of AI computing, CPUs continue to play an important role in supporting AI workloads. This is creating incremental opportunities for Intel’s Xeon portfolio. The momentum is encouraging as AI-related infrastructure spending is likely to remain healthy, providing Intel with an opportunity to capitalize on rising compute requirements.

Client Computing Business Gains MomentumIntel is also witnessing improving trends in its client computing business. Client Computing and Physical AI Group revenues totaled $8.9 billion in the second quarter, increasing 15% sequentially. The rising adoption of AI-enabled PCs represents an important growth opportunity. AI PC revenues increased 26% sequentially and accounted for roughly two-thirds of Intel’s client revenues during the quarter.

Intel is ramping Panther Lake and Wildcat Lake products based on its advanced 18A process technology. Increasing adoption of these products, coupled with an eventual enterprise PC refresh cycle, should support the client business over the long run. The company is also expanding its presence in edge computing and physical AI applications, including robotics. These emerging markets could broaden Intel’s addressable opportunity beyond traditional PCs.

Improving Manufacturing Execution Bodes WellImproving manufacturing execution is another positive for Intel. Demand for its products remains strong, with supply constraints limiting the company’s ability to fully satisfy customer requirements. The company is increasing wafer output across Intel 7, Intel 3 and Intel 18A to address the demand. Improving yields and cycle times are helping boost production while lowering manufacturing costs.

The progress of Intel 18A is particularly encouraging. Output from the process exceeded the company’s internal target during the second quarter and increased sharply on a sequential basis. Intel’s ability to consistently execute on advanced process nodes remains crucial to its turnaround. Better manufacturing execution should strengthen the competitiveness of its product portfolio while supporting gross-margin expansion over time.

Price PerformanceIntel has gained a stellar 347.1% over the past year compared with the industry’s growth of 29.1%, outperforming peers like Advanced Micro Devices, Inc. (AMD - Free Report) and NVIDIA Corporation (NVDA - Free Report) . While NVIDIA stock is up 18.8%, Advanced Micro has gained 168.4% over this period. 

Image Source: Zacks Investment Research

Estimate RevisionEarnings estimates for Intel for 2026 have moved up 116.2% to $1.47 over the past year, and the same for 2027 has increased 38.3% to $1.95. The positive estimate revision depicts bullish sentiments for the stock.

Image Source: Zacks Investment Research

INTC Growth Hurt by Operating RisksDespite the uptrend, Intel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. This has affected its margins. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days. An accelerated ramp-up of AI PCs has adversely impacted Intel’s margins, as it shifted production to a high-volume facility in Ireland, where wafer costs are typically higher. Competitive pricing pressure from rivals has further dented its profitability.

China accounted for more than 24% of Intel's total revenue in 2025, making it the company's second-largest market after the United States. However, the communist nation's purported move to replace U.S.-made chips with domestic alternatives significantly affected INTC’s revenue prospects. The directive to phase out foreign chips from key telecom networks by 2027 underscores Beijing's accelerating efforts to reduce reliance on Western technology amid escalating U.S.-China trade and tariff tensions.

As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. In addition, weaker spending across consumer and enterprise markets, especially in China, resulted in elevated customer inventory levels.

End NoteIntel's innovative AI solutions hold immense promise for the broader semiconductor ecosystem. By addressing the challenges of scalability, performance and interoperability, it is paving the way for widespread AI adoption across enterprises worldwide. Management is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Significant capital infusion to revive its lost glory is likely to spur growth. All these efforts appear to resonate well, as exhibited by an uptrend in the stock price performance and rising earnings estimates.

However, margin woes amid strict export restrictions, unfavorable product mix and elevated customer inventory levels weigh on its bottom line. With a Zacks Rank #3 (Hold), Intel appears to be treading in the middle of the road, and investors could be better off if they exercise caution and stay invested for long-term gains. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intel (INTC -4.06%) posted its fastest revenue growth in nearly 15 years last month, with second-quarter revenue rising 25% year over year to $16.1 billion. But the unit the company's whole transformation is staked on, Intel Foundry, is still deep in the red. The chipmaking arm lost $2.1 billion in the quarter on $5.8 billion of revenue.

The loss, I'd argue, is where the progress lives. A year ago, the foundry lost $3.2 billion on $4.4 billion of revenue -- about 72 cents lost for every dollar the unit brought in. This quarter it lost about 36 cents per dollar. The loss per dollar of revenue halved in a year.

Intel has told investors the foundry should stop losing money in 2027, and the growth stock (up more than 160% in 2026 as of this writing) is priced as if that arrival is on schedule. So how much revenue does the foundry need before the losses stop?

Image source: Intel.

A smaller loss on more revenue The trend is now three quarters deep and pointed one direction. Intel Foundry's revenue climbed from $4.4 billion in the year-ago quarter to $5.4 billion in the first quarter of 2026 and $5.8 billion in the second. Its operating loss, meanwhile, narrowed from $3.2 billion to $2.4 billion and then $2.1 billion. And the second quarter's 31% year-over-year revenue growth was itself an acceleration, up from 16% in the first quarter.

The company's explanation is about the factories themselves. Production on Intel 18A, the company's newest widely deployed manufacturing process, came in about 25% above Intel's internal target and rose more than 50% from the first quarter. Better yields and faster cycle times are bringing down wafer costs, and Intel says the foundry has cut the cost of its main Panther Lake chip by roughly 50% so far this year.

Clearly, the factories are getting cheaper to run.

Intel's biggest customer is Intel But external customers supplied just $293 million of the foundry's $5.8 billion in quarterly revenue. The rest (roughly 19 of every 20 dollars) came from building chips for Intel's own product groups.

Of course, that internal demand is no small thing. Intel's data center and AI segment grew revenue 59% year over year last quarter, and the company says it is supply constrained, with data center customers demanding more chips than Intel can produce.

And chief financial officer David Zinsner said in the company's published earnings call remarks that customers "continue to signal a strong and sustainable spending environment." After all, a foundry filled by its owner's orders beats an empty one.

But internal revenue can only prove the factories work. It can't prove the business does.

Intel still hasn't announced a major outside customer for its leading-edge processes -- security specialist Fortinet, which in July became the foundry's first named customer under CEO Lip-Bu Tan, is buying chips built on an older process. Until other companies' chips fill these factories at scale, the foundry rises and falls with Intel's own product cycle.

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Break-even has a date Intel's stated target is foundry break-even in 2027. Zinsner said last year that getting there requires only a few billion dollars of additional external revenue. That's a small number against the unit's $23 billion annual revenue pace, and a large one against the roughly $1.2 billion annual pace external customers supply today.

The bridge is supposed to be Intel 14A, the next manufacturing process, which is being prepared for risk production -- early trial manufacturing -- in 2027 with high-volume output committed for 2028. Meaningful outside volume, in other words, likely arrives near the deadline, not ahead of it. And the spending comes first: Intel says it is substantially increasing its investments to support the demand it sees. On Monday, the company announced a $15 billion common stock offering to help fund the build-out without adding new debt.

To me, the external revenue line is the one to watch, and the arithmetic hasn't changed: outside customers pay Intel about $1.2 billion a year, and break-even needs a few billion more.

The loss math is improving at a pace that, I think, makes 2027 believable. The stock is another matter. At about $98 as of this writing, shares trade near 60 times next year's expected earnings -- a rich valuation by any standard, and a price that assumes the foundry bet has already been won.

The foundry is doing what Intel said it would, a quarter at a time. At this price, the stock needs it to keep doing exactly that for two more years.