Intel rozšiřuje AI napříč PC, podniky i cloudem a současně zvyšuje výrobu na Intel 18A, zatímco pokračuje vývoj 14A. Firma těží z rostoucí poptávky po AI infrastruktuře.
Key Takeaways Intel is expanding AI across PCs, enterprise systems, edge computing and AI infrastructure.INTC ramped Intel 18A production while advancing 14A development and advanced packaging.Intel is growing AI infrastructure exposure through Xeon, networking, custom silicon and cloud partnerships. Artificial intelligence is reshaping the semiconductor industry, creating new opportunities across data centers, enterprise computing, networking and advanced manufacturing. For Intel Corporation (INTC - Free Report) , these trends are driving a broader transformation that extends well beyond its traditional PC business.
The company's ability to capitalize on AI infrastructure demand while executing its manufacturing roadmap will likely play a central role in determining its long-term growth trajectory.
Intel Pushes AI Beyond Traditional PCsIntel is expanding its AI strategy across commercial and consumer markets by integrating artificial intelligence capabilities into PCs, enterprise systems and edge computing platforms. The company has repositioned its client business around both traditional computing and physical AI applications, reflecting growing demand for local AI processing across a wider range of devices.
Beyond AI PCs, Intel continues investing in enterprise AI infrastructure, robotics and edge deployments. Its expanding portfolio enables customers to process AI workloads closer to where data is generated, supporting applications that require lower latency, enhanced security and improved real-time performance.
INTC Advances the Next Foundry CycleIntel's manufacturing roadmap continues to make measurable progress. The company has ramped Intel 18A into volume production for multiple products while reporting improving yields, higher factory output and better cycle times across its manufacturing network.
Looking ahead, Intel remains on track with Intel 14A development, including continued progress on process technology and customer engagement. At the same time, advanced packaging technologies such as EMIB-T and growing external foundry relationships highlight Intel's broader effort to transform its manufacturing business into a long-term competitive advantage serving both internal products and third-party customers.
Intel Benefits From AI Infrastructure DemandAI infrastructure demand is expanding well beyond graphics processors, creating opportunities across CPUs, networking, custom silicon and advanced packaging. Intel is benefiting from stronger adoption of Xeon processors as enterprises and hyperscale customers build increasingly sophisticated AI environments.
The company is also strengthening its position through networking products, purpose-built silicon, advanced packaging technologies and collaborations with enterprise customers and cloud providers. These initiatives support Intel's participation across multiple layers of AI infrastructure rather than concentrating on a single product category.
Advanced Micro Devices, Inc. (AMD - Free Report) continues expanding its presence in server processors and AI computing, while NVIDIA Corporation (NVDA - Free Report) remains the market leader in AI accelerators. Intel's diversified product portfolio and manufacturing capabilities provide an alternative competitive approach as enterprise AI deployments continue to broaden.
INTC Navigates Industry HeadwindsDespite favorable industry trends, Intel continues operating in a highly competitive and capital-intensive environment. Manufacturing execution remains essential as the company scales advanced process technologies while balancing production costs and customer commitments.
Broader industry challenges also remain. Supply constraints affecting leading-edge components, fluctuations in memory markets, aggressive competition across CPUs, GPUs, networking and application-specific integrated circuits, along with elevated capital spending requirements, could influence how effectively Intel converts emerging AI opportunities into sustained financial growth.
How Intel's Rating Reflects the Trend StoryIntel's strategic transformation is increasingly tied to long-term technology trends rather than the traditional PC replacement cycle. Continued execution across AI products, manufacturing and foundry services will remain critical as these opportunities evolve.
The stock currently carries a Zacks Rank #1 (Strong Buy), reflecting improving earnings estimate momentum. You can see the complete list of today’s Zacks #1 Rank stocks here. However, its VGM Score of D indicates that its overall combination of value, growth and momentum characteristics remains relatively modest. The Value Score of F and Growth Score of C contrast with a stronger Momentum Score of B, suggesting the market currently places greater weight on Intel's improving operational momentum while investors continue to monitor whether long-term execution translates into stronger value and growth characteristics.
Key Takeaways Intel is expanding beyond PCs with AI, enterprise, edge computing, foundry and autonomous driving businesses.Intel's foundry utilization, yields and factory output improved, with narrower operating losses.INTC's growing AI adoption through Xeon, AI PCs, networking, packaging and cloud and enterprise partnerships. Intel Corporation (INTC - Free Report) is reshaping its business around artificial intelligence, enterprise infrastructure and advanced manufacturing as it reduces its reliance on the traditional PC market. The company's long-term investment case increasingly depends on its ability to execute across these strategic priorities while strengthening its manufacturing leadership.
Recent results suggest Intel is making progress. Stronger demand for AI infrastructure, improving foundry execution and expanding customer adoption across multiple product categories are helping reinforce confidence in its turnaround strategy.
Intel Expands Beyond the PC MarketIntel has steadily diversified beyond its legacy PC business by focusing on data-centric markets that include AI infrastructure, enterprise computing, edge computing and autonomous driving. Its operating structure now reflects this transition, with dedicated businesses serving client computing, data center and AI, manufacturing, networking and Mobileye's autonomous driving platform.
A major strategic shift has been the adoption of Intel's internal foundry operating model. By separating product development from manufacturing operations, the company aims to improve transparency, accountability and cost discipline while increasing manufacturing efficiency. The structure also supports Intel's broader ambition to become a leading foundry serving both internal products and third-party customers.
INTC Builds Momentum Across AI PlatformsArtificial intelligence has become a key growth driver across Intel's portfolio. Demand for Xeon processors continues to strengthen as enterprises and hyperscale customers expand AI infrastructure beyond graphics processors into CPUs, networking and purpose-built silicon. The company has also broadened its AI offerings with AI PCs, Arc Pro graphics solutions, networking products and advanced packaging technologies.
Intel is expanding customer adoption through partnerships spanning cloud providers, enterprise customers and industry-specific AI deployments. Continued investment in purpose-built silicon, physical AI and advanced packaging should further strengthen its position across data center, edge and enterprise workloads.
Competition remains intense from Advanced Micro Devices, Inc. (AMD - Free Report) , which continues expanding its presence in data center processors and AI accelerators. NVIDIA Corporation (NVDA - Free Report) also remains a dominant force in AI infrastructure through its GPU ecosystem, underscoring the importance of Intel's differentiated CPU, networking and manufacturing strategy.
Intel Foundry Becomes a Strategic Growth EngineIntel Foundry has become one of the company's most important long-term growth initiatives. The business reported improving factory utilization, better manufacturing yields and significantly higher factory output, while operating losses narrowed as production efficiency improved.
Management also highlighted meaningful reductions in Panther Lake wafer costs, continued progress on Intel 18A manufacturing and development milestones for Intel 14A. External customer engagement continues to expand alongside growing demand for advanced packaging services, reinforcing Intel's effort to establish foundry services as a meaningful long-term revenue driver.
INTC Faces Execution and Competitive RisksDespite encouraging progress, Intel still faces significant execution challenges. Manufacturing leadership depends on successfully ramping advanced process technologies while maintaining cost discipline and meeting customer commitments.
The competitive landscape also remains challenging across CPUs, GPUs, application-specific integrated circuits, networking and custom silicon. Elevated capital expenditures, ongoing industry supply constraints and geopolitical uncertainty could continue creating operational and financial headwinds as Intel scales its manufacturing investments.
How Intel's Rating Fits the Current ThesisIntel's long-term outlook increasingly depends on consistent execution across AI products, manufacturing and foundry services. Continued progress in these areas could strengthen its competitive positioning as enterprise AI adoption expands.
The stock currently sports a Zacks Rank #1 (Strong Buy), reflecting improving earnings momentum. You can see the complete list of today’s Zacks #1 Rank stocks here. However, its VGM Score of D suggests its overall combination of value, growth and momentum characteristics remains relatively weak. That weaker composite score largely reflects a Value Score of F and Growth Score of C, although the Momentum Score of B indicates comparatively stronger price and earnings momentum. Together, these measures suggest that while earnings expectations have improved, investors may still want to balance Intel's improving momentum against its more modest value and growth characteristics before making investment decisions.
Po silných výsledcích za 2Q26 zvedl Seaport Global Securities cílovou cenu pro Intel z 90 USD na 125 USD a potvrdil doporučení Buy. Hrubá marže se poprvé za dva roky vrátila nad 40 %.
Intel (NASDAQ: INTC) delivered one of its strongest earnings beats in years on July 24, prompting some analysts to revise their Intel stock price targets.
For instance, Seaport Global Securities has raised its Intel stock prediction 2026 from $90 to $125 while reiterating a “Buy” rating, citing strong quarterly results and an improving outlook.
Specifically, the brokerage highlighted that Intel’s return to gross margins were above 40% for the first time in two years, which is seen as a key sign that the company’s turnaround is gaining traction.
Seaport also pointed to management’s decision to increase capital expenditure forecast for 2026 and likely 2027, arguing the chipmaker would not commit without securing meaningful customer demand. Intel’s confirmation that its 14A manufacturing process remains on track seems to support this.
Intel share price YTD. Source: Finbold DA Davidson raises INTC stock price target to $100 DA Davidson also raised its price target on Intel, lifting it from $77 to $100 while maintaining a “Neutral” rating. Analysts noted that the latest quarterly results exceeded Wall Street expectations on both revenue and earnings, which shows the growing importance of the firm’s CPU business.
“We maintain our NEUTRAL rating and raise our price target to $100 from $77 on INTC following strong 2Q26 earnings that were highlighted by a significant beat on top and bottom-line expectations,” DA Davidson wrote.
Moreover, DA Davidson pointed to increased capital expenditure plans as a sign that leadership is continuing to attract new customers as demand for domestic semiconductor manufacturing accelerates in the United States.
Cantor Fitzgerald cuts Intel stock price target Conversely, Cantor Fitzgerald lowered its Intel share price forecast from $150 to $125, albeit while reiterating a “Neutral” rating and stating that the long-term outlook still remains promising.
On the more cautious end, Cantor pointed to uncertainty surrounding Intel’s client computing business, server CPU market share losses, and lack of new customer announcements. In addition, the brokerage also noted ongoing speculation that Intel could pursue an equity raise.
Nonetheless, the firm remains constructive on Intel, especially thanks to its ties to Taiwan Semiconductor Manufacturing (NYSE: TSM), which could strengthen both the company and the U.S. semiconductor industry.
Overall, Cantor concluded that investors are likely not going to be more bullish until Intel shows greater revenue potential in its front- and back-end manufacturing operations.
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Just three months after warning that its next-generation 14A manufacturing process could be delayed—or even abandoned—without enough customer demand, Intel has officially committed to high-volume production in 2028.
The decision removes one of the biggest questions hanging over Intel Foundry. It also starts a new countdown. After committing billions of dollars to the technology, Intel now has roughly two years to prove customers will place enough orders to justify the investment.
Three Months Changed EverythingEarlier this year, Intel made it clear that 14A wasn’t guaranteed.
In its first-quarter filing, the company said future investments in 14A and factory expansion would depend on securing meaningful external customer commitments and achieving acceptable returns on capital.
This quarter, that language changed materially.
CEO Lip-Bu Tan said Intel has “made the decision in Q2 to fully commit to high volume ramps in 2028,” citing stronger customer engagement, rising demand from Intel’s own product roadmap and encouraging technical progress across the node.
“We remain on track for 14A risk production for our internal products in the second half of 2027,” Tan said, adding that the company is seeing “increasing momentum on customer engagements” and growing confidence that 14A will be competitive on performance, power, density, cost and schedule.
CFO Dave Zinsner echoed that message, saying Intel increased investments during the quarter to prepare for 14A risk production in 2027 while committing to high-volume manufacturing the following year.
The Countdown Has StartedThe commitment doesn’t mean Intel’s foundry turnaround is complete.
Far from it.
Intel still reported a $2.1 billion operating loss in its Foundry business during the quarter, although operating margin improved to negative 36.2% from negative 71.7% a year earlier as revenue climbed to $5.8 billion, according to the earnings presentation.
The company also entered risk production for 18A-P, while the next major milestone for 14A—the 0.9 Process Design Kit (PDK)—remains on track for October, giving prospective customers another opportunity to evaluate the technology before committing future chip designs.
The company’s latest Form 10-Q also makes clear that the investment case now hinges on converting technical momentum into commercial success. Intel said it intends to accelerate manufacturing expansion projects for 14A, but “the scale and pace” of those investments will ultimately depend on demand from Intel’s own products and design wins from major external foundry customers.
For investors, the story is no longer whether Intel will build 14A.
It’s whether, by 2028, enough customers will be waiting for it.
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Market News and Data brought to you by Benzinga APIs
Intel v pátek před otevřením trhu vzrostl o 6 % poté, co silný výhled tržeb za 3. čtvrtletí naznačil, že AI podporuje obrat firmy. Společnost zároveň zvýšila letošní kapitálové výdaje na 20 miliard USD z 18 miliard USD.
Computer motherboard and Intel chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 24 (Reuters) - Intel's (INTC.O), opens new tab shares rose 6% in premarket trading on Friday after bullish forecasts signaled the AI boom was propelling the chipmaker's long-awaited turnaround.
The company forecast third-quarter revenue above Wall Street expectations and raised this year's capital expenditure estimate to $20 billion from $18 billion.
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Intel's improving outlook reflects growing adoption of its data center central processing units (CPUs) by customers building infrastructure for artificial intelligence, as CEO Lip-Bu Tan works to position the company as a broader beneficiary of AI-driven semiconductor demand despite Nvidia's (NVDA.O), opens new tab lead in accelerator chips.
"The capex increase not only signals confidence in cash flow upside and demand visibility from long-term agreements for products, but also confidence that Foundry customers are coming (for packaging and 14A wafers)," analysts at Melius Research said.
This month's selloff in global chip stocks has pushed Intel off record highs, but the shares have more than doubled this year, driven by optimism around the company's turnaround efforts.
The strong results prompted at least six analysts to raise their price targets, leaving the median target about 8.8% above the stock's last close, according to data compiled by LSEG.
Tan has spent the past year strengthening Intel's finances, securing backing from the U.S. government and major investors as the chipmaker seeks to play a key role in Washington's push to revive domestic semiconductor manufacturing.
"The aggressive capex raise is a proof point that Intel is likely to see continued customer acquisition as the United States demands more domestic semiconductor manufacturing," D.A. Davidson analysts said.
Demand for data center CPUs has surged alongside the rise of AI agents, with Intel executives noting earlier this year that orders were running ahead of the company's production capacity.
Reporting by Joel Jose in Bengaluru; Editing by Amanda Cooper and Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles., opens new tab
John Pitzer - Corporate Vice President of Corporate Planning & Investor Relations
Lip-Bu Tan - CEO & Director
David Zinsner - Executive VP, CFO and Principal Financial & Accounting Officer
Conference Call Participants
Benjamin Reitzes - Melius Research LLC
Joseph Moore - Morgan Stanley, Research Division
Stacy Rasgon - Bernstein Institutional Services LLC, Research Division
Timothy Arcuri - UBS Investment Bank, Research Division
Vivek Arya - BofA Securities, Research Division
Christopher Muse - Cantor Fitzgerald & Co., Research Division
Aaron Rakers - Wells Fargo Securities, LLC, Research Division
Presentation
Operator
Thank you for standing by, and welcome to Intel Corporation's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Mr. John Pitzer, Vice President, Investor Relations. Please go ahead, sir.
John Pitzer
Corporate Vice President of Corporate Planning & Investor Relations
Thank you, Jonathan, and good afternoon to everyone joining us today. By now, you should have received a copy of the Q2 earnings release and presentation. Both are available on our Investor Relations website, intc.com. For those joining us online today, this presentation is also available on our webcast window.
I am joined today by our CEO, Lip-Bu Tan; and our CFO, David Zinsner. Lip-Bu will open up with comments on second quarter results and update the progress we're making on strategic priorities. Dave will then discuss our overall financial results, including third quarter guidance before we transition to answer your questions.
Before we begin, please note that today's presentation does contain forward-looking statements based on the environment as we currently see it. As such, they are subject to various risks and uncertainties. It also contains reference to non-GAAP financial measures that we believe provide useful
Intel měl silné čtvrtletí, když tržby divize Data Center meziročně vzrostly téměř o 60 % a provozní marže stoupla na 39,5 %. Přesto je podle článku valuace stále napjatá a hodnocení akcií bylo sníženo na Sell.
SummaryIntel Corporation posted a strong Q2, with Data Center revenue up nearly 60% YoY and operating margin rising to 39.5%.INTC’s turnaround is gaining traction, but its valuation remains stretched, trading at a premium to AMD, Broadcom, and Nvidia even on optimistic assumptions.Despite operational improvements and positive guidance, much of the future upside appears already priced in, limiting shareholder yield potential.I’m downgrading INTC to a Sell, as robust execution is outweighed by an inflated valuation and limited margin of safety. Getty Images
The Intel Corporation (INTC) thesis right now seems a bit strange to me. Sure, it has a bit of turnaround characteristics, as well as some secular trends that the company can ride to improve its earnings. But it also has
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Intel ve 2. čtvrtletí vykázal zisk 0,42 USD na akcii a tržby 16,13 miliardy USD, obojí nad odhady. Loni ve stejném období byl ve ztrátě 0,10 USD na akcii.
Intel (INTC - Free Report) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to a loss of $0.1 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this world's largest chipmaker would post earnings of $0.01 per share when it actually produced earnings of $0.29, delivering a surprise of +2800%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Intel, which belongs to the Zacks Semiconductor - General industry, posted revenues of $16.13 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.89%. This compares to year-ago revenues of $12.86 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Intel shares have added about 178.1% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Intel?While Intel has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Intel was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $15.08 billion in revenues for the coming quarter and $1.07 on $58.71 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - General is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Amtech Systems (ASYS - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This provider of equipment for solar panel and semiconductor makers is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Amtech Systems' revenues are expected to be $21.5 million, up 9.9% from the year-ago quarter.
Intel ve 2. čtvrtletí překonal odhady díky silné poptávce po AI a datových centrech. Tržby vzrostly na 16,1 miliardy USD a firma zlepšila výhled na 3. čtvrtletí.
Intel Corp (NASDAQ:INTC, XETRA:INL) shares jumped nearly 11% in after-hours trading after the chipmaker reported second quarter results that exceeded Wall Street expectations, driven by stronger demand across its data center and client computing businesses and a better-than-expected outlook for the third quarter.
The company reported second quarter revenue of $16.1 billion, up 25% from a year earlier and above analyst expectations of $14.43 billion.
Adjusted earnings per share came in at $0.42, compared with consensus estimates of $0.21 per share.
Intel’s Data Center and AI segment generated $6.3 billion in revenue during the quarter, topping analyst expectations of $5.54 billion and rising 59% year over year. The Client Computing and Physical AI Group reported revenue of $8.9 billion, up 13% year over year and ahead of estimates of $7.99 billion.
Intel forecast third quarter revenue of $15.8 billion to $16.8 billion, above Wall Street expectations of $15.1 billion.
The company expects adjusted earnings per share of $0.38, compared with analyst estimates of $0.27.
“AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and vast wafer foundry network,” Intel CEO Lip-Bu Tan said in a statement.
“Our Q2 results represent our strongest revenue growth in more than fifteen years, enabled by greater speed, accountability, and customer focus.”
Intel CFO Dave Zinsner wrote that the company delivered a strong quarter “on robust demand and improved execution,” including higher factory yields and improved cycle times.
He added that AI-driven compute demand continues to strengthen and that Intel is increasing investments in equipment, clean room space and substrates to support expected growth.
Intel zveřejní výsledky za 2. čtvrtletí po uzavření trhu ve čtvrtek; analytici čekají zisk 22 centů na akcii a tržby 14,45 miliardy USD. Akcie ve středu klesly o 2,7 %.
Intel Corporation (NASDAQ:INTC) will release its second quarter earnings report after the closing bell on Thursday, July 23.
Analysts expect the Santa Clara, California-based company to report quarterly earnings of 22 cents per share, versus a loss of 10 cents per share in the year-ago period. The consensus estimate for Intel’s quarterly revenue is $14.45 billion. It reported $12.86 billion last year, according to Benzinga Pro.
On July 21, Intel and Fortinet announced a strategic collaboration to develop Fortinet Security Processor 6.
Intel shares fell 2.7% to close at $102.62 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying INTC stock? Here’s what analysts think:
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Intel a AMD uzavírají s čínskými zákazníky dlouhodobější závazky na dodávky serverových CPU, protože ceny v Číně dál rostou. U některých produktů jsou letos výše o více než 40 %.
Item 1 of 2 An Intel logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
[1/2]An Intel logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesIntel, AMD seek longer China server CPU supply commitmentsAI data-centre boom strains supply beyond GPUs into mainstream processorsChina server CPU prices up more than 40% this year for some productsBEIJING, July 23 (Reuters) - U.S. chipmaking giants Intel (INTC.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab are signing longer-term purchase commitments with Chinese server customers for data-centre processors as prices surge, two people familiar with the talks said.
The move highlights a broader consequence of the AI boom: demand has spread beyond AI accelerators to memory, networking gear and server processors, giving suppliers greater leverage to seek long-term purchase deals.
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AI data centres require not only Nvidia-style graphics processors (GPUs) but also large numbers of central processing units (CPUs) to support servers, storage, networking and inference workloads.
The agreements under discussion typically lock in purchase volumes but not prices, the people said. Most cover about a year of supply, although Intel and AMD have discussed commitments of two years or longer from some customers, one of the people said.
The shift echoes trends in the memory-chip market, opens new tab, where the AI-driven shortage has pushed buyers toward longer-term supply commitments.
The sources declined to be identified because they were not authorised to speak to the media. Intel and AMD did not respond to requests for comment.
The talks mark a shift for server CPUs, which have been easier to obtain than AI accelerators or memory chips.
Tighter CPU supply could raise costs and slow deployment for Chinese cloud providers and internet companies expanding AI services.
Server CPU prices are still climbing in China, with month-on-month increases topping 10% for some products, one of the sources said. Prices of some CPU products have risen more than 40% in China since the start of the year, the source added.
Reuters reported earlier this year that Intel and AMD had notified Chinese customers of lengthy waits for server CPUs, with Intel lead times reaching as long as six months for some products.
The CPU shortage will be among the key topics likely to be addressed on Thursday when Intel reports its quarterly results.
CEO Lip-Bu Tan told analysts in April that demand "continues to run ahead of supply," especially for Xeon server CPUs. He also cited a multi-year deal with Google as one of several long-term contracts Intel signed in the first quarter.
AMD, due to report in early August, already raised its server CPU market forecast to more than $120 billion by 2030, citing strong demand related to agentic AI workloads.
China is one of the world's largest server markets, fuelled by rapid construction of data centre racks, AI computing clusters and national computing infrastructure.
The buildout has intensified competition for Intel and AMD processors, even as Chinese buyers face separate U.S. restrictions on access to the most advanced AI GPUs.
Editing by Miyoung Kim and Kim Coghill
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Eduardo Baptista is a Senior Correspondent for Reuters based in Beijing, covering China’s technology, space, and automotive industries. He has led enterprise and investigative reporting on China’s military-linked companies, artificial intelligence and semiconductor supply chains, as well as macroeconomic and industrial policy. Baptista has reported from China for nearly a decade and holds a BA in History from the University of Cambridge.
Intel oznámil prvního veřejně jmenovaného externího zákazníka pro své služby foundry: Fortinet využije jeho výrobu pro čip SP6 na procesu Intel 4. Akcie v úterý uzavřely na 105,40 USD po růstu o více než 8 %.
Intel (INTC -2.47%) CEO Lip-Bu Tan told CNBC in May that "multiple customers" were working with the company's foundry business, but that it was his personal policy not to name them. On Tuesday, Intel finally named one.
Cybersecurity specialist Fortinet will use Intel's foundry (the business that manufactures chips for other companies) to produce its next-generation security chip, called the SP6, the two companies announced. The chip will be built on the Intel 4 process, and Fortinet becomes the first named outside customer for the foundry since Tan took over in March 2025.
Investors saw plenty to like. Intel shares jumped more than 8% on Tuesday to close at $105.40, adding to a run that has lifted the stock more than 300% over the past year.
And the timing raises the stakes. Intel reports second-quarter results after the market closes on Thursday, July 23.
So what does the Fortinet deal actually prove -- and what should investors watch for in the report?
Image source: Intel.
A name matters more than the chip Intel's foundry effort has never lacked announcements. What it has lacked is named, committed customers. And Intel has yet to land a major one for its most advanced manufacturing processes, known as 14A and 18A.
That history is what makes the Fortinet deal both encouraging and limited.
On the positive side, a company has now publicly committed a next-generation product to Intel's manufacturing. That is the kind of outside validation the foundry strategy has been missing, and it arguably makes the next customer conversation easier. Fortinet is a credible name, too. The cybersecurity company's dedicated security chips serve a market where demand has been climbing for years.
However, the SP6 will be built on Intel 4. That's an older, less advanced process, introduced in 2023 for the compute tile in Intel's own Core Ultra PC chips -- not the leading-edge technology Intel's turnaround ultimately depends on. A named customer on Intel 4 is progress. It isn't the marquee win that would prove Intel can manufacture the industry's most advanced chips in large quantities.
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The economics are still tiny The deal's financial weight is the other reason to stay level-headed. In the first quarter, Intel Foundry generated $5.4 billion of revenue, up 16% year over year. But nearly all of that came from making Intel's own products. External foundry revenue (money from manufacturing chips for outside customers) was just $174 million in the quarter. That's a sliver for a company that posted $13.6 billion in total revenue.
Demand for Intel's own chips, at least, is trending the right way -- even as the company confirmed this week that it is trimming jobs in that same data center unit. First-quarter revenue in the company's data center and artificial intelligence (AI) segment rose 22% year over year, faster than the company's overall 7% growth rate.
"The next wave of AI will bring intelligence closer to the end user," Tan said in the company's first-quarter earnings release, adding that the shift "is significantly increasing the need for Intel's CPUs and wafer and advanced packaging offerings."
Even so, Intel's reported bottom line is still in the red while it builds out capacity. The company posted a net loss of $3.7 billion in the first quarter -- though $4.1 billion of restructuring and impairment charges, largely a writedown of Mobileye goodwill, more than accounted for it. On a non-GAAP basis, which strips out those and other items, Intel earned $1.5 billion.
That's what makes Thursday's report the more important event of the week. Investors should watch three things: the trajectory of external foundry revenue, the size of the net loss, and any sign that a significant leading-edge customer is getting closer.
And the stock's run complicates the setup. After rising more than 300% in a year, Intel trades at nearly 90 times forward earnings -- a multiple that assumes the turnaround works, not one that leaves room for it to stumble. For a company still in the red on a reported basis, that is a lot of confidence to carry into an earnings report. And Tuesday's move, which came amid a broad chip-sector rally, showed how eager the market is to reward any scrap of foundry progress.
The Fortinet announcement is the first outside proof point of the Tan era, and I don't want to diminish it. A foundry needs customers willing to say so publicly, and now Intel has one. But the deal contributes a signal -- Intel didn't disclose what it contributes in dollars. At this valuation, Intel needs to deliver both. I'd want to see Thursday's numbers (external foundry revenue in particular) before paying nearly 90 times forward earnings for a turnaround still finding its footing.
Intel před výsledky za 2Q 2026 těží z rostoucí poptávky po CPU v AI datových centrech, kterou podle TSMC podporuje agentic AI. Firma navíc kvůli napjaté nabídce zvyšuje ceny CPU.
With massive gains of 357% over the past year, Intel (INTC +0.46%) has emerged as a top semiconductor play due to the company's fast-improving financial health and its growing influence in artificial intelligence (AI) chips.
However, Intel stock has slipped 25% from the 52-week high it reached on June 30. The company will release its second-quarter 2026 earnings report after the market closes on July 23, and there is a good chance the stock will regain momentum, thanks to a recent revelation from foundry giant Taiwan Semiconductor Manufacturing.
Let's take a closer look at this potential development that could spark a rally in Intel's shares.
Image source: Intel.
TSMC notes that AI is driving an improvement in CPU demand Foundry giant TSMC recently released its Q2 earnings report. Management noted on the earnings call that the "emergence of agentic AI is leading to a resurgence in the role of CPUs in AI data centers." It is worth noting that AI data centers have primarily relied on graphics processing units (GPUs) to handle AI workloads, such as training large language models (LLMs).
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However, the proliferation of agentic AI applications has brought CPUs back in focus in AI data centers. That's because CPUs are good at performing complex tasks by breaking them down into multiple steps, and they also help reduce workloads on GPUs, which can handle other compute-intensive tasks. As a result, there is a stark shift in the CPU-to-GPU ratio in data centers that handle agentic AI workloads compared with those running traditional AI models.
Market research firm TrendForce estimates a 50-50 split between CPUs and GPUs in agentic AI data centers. For comparison, LLM-centric AI data centers have a CPU-to-GPU ratio of 1:4 to 1:8. This is great news for Intel, which is the leading player in the server CPU market. The company's revenue share of server CPUs stands at an estimated 54%, according to Mercury Research.
Of course, it has been losing ground to AMD in this market, but Intel is taking concrete steps to ensure that it remains a key player in this fast-growing space. AMD estimates that the server CPU market could clock $120 billion in annual revenue in 2030, growing at a compound annual growth rate of more than 35% through the end of the decade.
Even if Intel manages to hang on to a 50% share of this space, it could generate $60 billion in annual revenue from server CPU sales in 2030. That will be a major improvement over Intel's data center and AI (DCA) revenue of $16.9 billion in 2025. However, it is worth noting that this segment also includes revenue from sales of other AI accelerators, such as custom processors.
So, Intel could report much stronger growth in its DCAI revenue when it releases its Q2 report, which could translate into a solid bottom-line beat.
Favorable server CPU pricing will be a tailwind for Intel's earnings Analysts anticipate Intel to swing to earnings per share of $0.22 in Q2 from a loss of $0.10 per share in the year-ago period. What's worth noting is that the consensus estimate sits only slightly ahead of Intel's guidance of $0.20 per share.
So, don't be surprised to see Intel's earnings easily surpass analysts' expectations, as the company recently confirmed to tech-focused online publication Tom's Hardware that it is increasing the prices of its CPUs due to tight supply. This could give this semiconductor stock a much-needed boost following its July 23 report, making it a good time for investors to consider buying before it regains its mojo.
After a sharp pullback over the last several trading sessions, semiconductor stocks are staging an impressive rebound on Tuesday as investors return to AI-related names ahead of a busy week of earnings.
The Philadelphia Semiconductor Index (SOX) is surging nearly 5%, with broad-based gains across Intel (INTC - Free Report) ), Micron (MU - Free Report) ), Marvell (MRVL - Free Report) ), AMD (AMD - Free Report) ), Nvidia (NVDA - Free Report) ), and other chipmakers helping to lift the broader Nasdaq.
The rally appears to reflect renewed optimism following last week's sector-wide correction, improving sentiment surrounding AI infrastructure spending, and investors positioning ahead of several closely watched technology earnings reports.
For Intel, the improving backdrop comes at an important time. To that point, the chipmaker has enjoyed a remarkable turnaround this year but has also experienced heightened volatility as investors evaluate whether its foundry ambitions, AI initiatives, and manufacturing roadmap can support a sustained recovery.
With Intel set to report Q2 earnings after market hours on Thursday, July 23, investors may be wondering if now is an opportune time to buy INTC, which has soared more than 350% over the last year to outperform all of its aforementioned chip peers outside of Micron.
Image Source: Zacks Investment Research
Intel’s Optimistic Q2 ExpectationsWall Street is expecting another meaningful step forward in Intel’s turnaround.
The Zacks Consensus Estimate calls for Q2 revenue of approximately $14.4 billion, representing 12% year-over-year growth.
On the bottom line, Intel's Q2 adjusted earnings are projected to come in at $0.21 per share, a dramatic improvement from a loss of -$0.10 a share in the year-ago period.
Investors will likely focus on several key themes during the earnings call:
Progress of Intel's 18A manufacturing processGrowth within the Data Center & AI businessUpdates on Intel Foundry customer winsOutlook for the second half of 2026Management's commentary regarding enterprise AI demand and capital spendingPerhaps most importantly, investors will want reassurance that Intel's turnaround remains on schedule and that its manufacturing investments are beginning to translate into sustainable financial improvements.
The Zacks ESPOptimistically, the Zacks ESP (Expected Surprise Prediction) indicates Intel could once again surpass earnings expectations, with the Most Accurate and recent estimate among Wall Street analysts having Q2 EPS slated at $0.22 and slightly above the underlying Zacks Consensus of $0.21 (Current Qtr below).
Image Source: Zacks Investment Research
This comes as Intel has impressively exceeded earnings expectations in three of its last four quarterly reports with an average EPS surprise of 996.88%. Intel most recently reported Q1 adjusted net income of $1.5 billion or $0.29 per share, which crushed EPS expectations of $0.01.
Image Source: Zacks Investment Research
AI and Foundry Progress Remain the Biggest CatalystsWhile Intel continues to face intense competition from AMD and Taiwan Semiconductor (TSM - Free Report) ), the company's long-term investment thesis has become increasingly centered around two opportunities: expanding its AI portfolio and rebuilding its semiconductor manufacturing leadership.
Recent announcements surrounding Intel's expanding AI ecosystem and growing enterprise partnerships, including with Nvidia, have reinforced confidence that management is making tangible progress.
Meanwhile, continued improvements in manufacturing yields and increased production on Intel's next-generation process technologies could eventually position the company as a more competitive foundry alternative for third-party chip designers.
If management delivers encouraging commentary regarding foundry customer demand and AI-related revenue opportunities, earnings estimate revisions could continue trending higher following the report.
Summary & Conclusion Although Intel still has work to do before fully re-establishing itself as a semiconductor leader, the company's turnaround appears to be gaining momentum.
Improving profitability, rising earnings estimates, AI-related growth opportunities, and continued progress within its foundry business all suggest Intel is moving in the right direction and starting to grow back into its valuation after a sharp rebound.
Naturally, Thursday's earnings report could introduce additional volatility, especially with options markets pricing in a sizable post-earnings move. However, if management delivers another solid quarter and reinforces confidence in its long-term roadmap, INTC could have further room to run.
For now, Intel stock currently sports a Zacks Rank #1 (Strong Buy), indicating favorable earnings estimate revisions and suggesting INTC may warrant consideration ahead of Q2 results.
Intel plánuje propouštění v divizi datových center v rámci snahy být „více soustředěnou a efektivní“ firmou. Počet dotčených zaměstnanců zatím není znám.
Lip-Bu Tan serves as the CEO of Intel. CHENG Yu-chen / AFP via Getty Images US chipmaker Intel is planning layoffs within its data center group amid a larger effort to become a "more focused and efficient" company.
"As part of our broader strategy to become a more focused and efficient company, Intel's data center group (DCG) is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success," an Intel spokesperson told Business Insider on Tuesday.
The spokesperson added that Intel is committed to supporting affected employees through the transition. It was not immediately clear how many company employees would be impacted by the layoffs.
A person familiar with the matter told Business Insider that the changes would not affect the data center group's product commitments and roadmaps and should help to better streamline the business.
News of the planned layoffs was first reported by The Oregonian.
The new round of job cuts comes as Intel has steadily reduced its workforce over recent years. Last year, Intel laid off at least 15% of its factory workers, or more than 5,000 employees, across four US states.
In August 2024, the chip manufacturer announced more than 15,000 job cuts as part of a plan to deliver $10 billion in cost savings for 2025.
Intel's turnaround effort gains momentumThe latest planned layoffs come at a pivotal period for Intel, which has shown signs of renewed momentum under CEO Lip-Bu Tan.
Tan was appointed CEO in March 2025 and is attempting a turnaround. The chipmaker's market share decreased in the last decade amid competition with foreign suppliers like Taiwan Semiconductor Manufacturing Company.
The US chipmaker is in the midst of developing its foundry business, an effort to develop chips for other companies.
On Tuesday, Intel announced its first named customer for its foundry business during Tan's tenure, a partnership with California-based cybersecurity company Fortinet to develop its next-generation security chip. Intel shares were up more than 6% following the news.
Last year, the US government took a nearly 10% stake in Intel, making it the company's largest shareholder. Intel's stock soared after President Donald Trump discussed the agreement at the White House and have climbed roughly 179% since the start of the year.
Tesla CEO Elon Musk has also said that the EV maker plans to use Intel's more advanced 14A chip process, which would mark a major win for the chipmaker.
Back in May, Intel's stock rose to an all-time high following reports that the company was in talks with Apple to make chips for its devices.
Do you work at Intel? Contact the reporter from a non-work email and device at [email protected] or on Signal at 718-288-1655.
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Natalie Musumeci You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Natalie is a senior reporter on Business Insider's Business News team.She was previously on BI's Legal Affairs team where she covered major cases out of state and federal court, as well as bankruptcy. Her coverage often focused on stories at the intersection of law, business, politics and technology. Natalie has covered Donald Trump’s criminal and civil cases, the wave of lawsuits against the second Trump administration, the indictment and criminal trial of Sean “Diddy” Combs, the shooting death of UnitedHealthcare CEO Brian Thompson, and the legal battles facing Elon Musk and his companies. Natalie came to Business Insider in June 2021 as a breaking news reporter, focusing on the most interesting angles around the trending news of the day. Natalie largely drove BI’s coverage around the fatal “Rust” shooting involving Alec Baldwin and the disappearance and murder of Gabby Petito.Prior to joining BI, Natalie worked for the New York Post, the New York Daily News, and The Brooklyn Paper. She has an extensive background covering crime and courts. During her more than 12-year journalism career, she did a stint covering the police beat out of the headquarters for the New York Police Department. Natalie, a Brooklyn native, graduated from Brooklyn College in 2012 with a journalism degree. Popular articles
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Intel oznámí hospodářské výsledky po zavření trhu ve čtvrtek; obchodníci čekají, že akcie do konce týdne zamíří až o 12 % oběma směry. Analytici zároveň čekají tržby 14,44 miliardy USD a upravený zisk 22 centů na akcii.
Key Takeaways Intel’s latest quarterly results are set to be released Thursday afternoon, with options traders anticipating its stock could swing up to 12% in either direction by the end of the week.Analysts expect Intel to report growing revenue and profits, as the chipmaker’s sales have been boosted by AI demand in recent quarters. Get personalized, AI-powered answers built on 27+ years of trusted expertise.
Intel is slated to report earnings after the closing bell Thursday, with traders anticipating a sizable move from the chipmaker’s stock following the results.1
Based on recent options pricing, traders expect Intel (INTC) shares could swing up to 12% in either direction by the end of the week. A move of that size from Monday’s close could see the shares rebound close to $109, where they were earlier this month, or drag them below $86.
Intel shares have soared more than 160% since the start of the year amid speculation about new deals after a flurry of high-profile agreements and better-than-expected results, though they’ve slipped over 30% from last month’s highs after a broader pullback in the AI trade in recent weeks.
Why This Matters to Investors Intel stock has been volatile lately, along with other semiconductor stocks, amid some worries about the sustainability of the tech industry’s spending on AI.
UBS analysts recently lifted their price target for Intel to $121 from $83, telling clients they see strong demand for Intel’s data center hardware potentially supporting higher prices. The analysts said they expect investors to be watching for updates from Intel on its manufacturing capabilities, as well as potential new customers for Intel’s foundry business.2
Intel is projected to report second-quarter revenue of $14.44 billion, up about 12% year-over-year, according to estimates compiled by Visible Alpha. Adjusted earnings per share are seen coming in at 22 cents, up from an adjusted loss of 10 cents per share a year ago, when newly appointed CEO Lip Bu-Tan was in the midst of launching a turnaround plan for the chipmaker.
Amid lingering uncertainty around Intel’s turnaround, a number of Wall Street analysts have hesitated to recommend buying the stock. Of the eight analysts tracked by Visible Alpha, four have called it a “buy,” while four have maintained neutral ratings. Their mean price target of $128 would suggest upside of more than 30% from Monday’s close, bringing the stock back near last month’s record.
Wedbush čeká, že Intel ve čtvrtek výrazně překoná odhady za 2. čtvrtletí, hlavně díky poptávce po serverech a cenám. Přesto drží neutrální postoj a varuje, že cílová cena 60 USD při aktuální ceně 95 USD zvyšuje citlivost akcie na změnu sentimentu.
Wedbush expects Intel Corp (NASDAQ:INTC, XETRA:INL) to comfortably beat second-quarter expectations when it reports on Thursday, but has kept a 'neutral' rating and $60 price target, warning that the shares are more vulnerable to a shift in market sentiment than to the numbers themselves.
The target sits 37% below the current $95 share price, and is based on around 40 times the broker's 2027 earnings estimate of $1.53, a multiple Wedbush acknowledges is well above Intel's historic norm and its peers.
The broker believes revenues and margins are set to handily beat consensus, driven by server demand and pricing.
Wedbush expects data centre sales to rise around 10% quarter on quarter and 40% year on year, with double-digit increases in average selling prices during the quarter, following first-quarter rises and with a further round reportedly being implemented in the current period.
Personal computer chip pricing appears to be seeing roughly parallel increases, supporting a modest revenue uptick despite a backdrop of slowing PC builds and cost-related demand destruction.
On margins, Intel had guided for a decline in the second quarter due to a one-off benefit from selling salvaged chips and the ramp of its 18A process, but Wedbush expects margins well ahead of guidance as pricing lifts and yields improve faster than expected.
The broker cautioned, however, that strong numbers may not be enough.
It pointed to Taiwan Semiconductor Manufacturing, where even a significant beat and a reacceleration in sales failed to prevent a semiconductor sell-off, driven by concerns over Chinese gains in artificial intelligence, US-Iran tensions, inflation's impact on rates, and hyperscaler returns on data centre spending.
Wedbush argued Intel may be better placed to weather some of these worries, since China still needs compute for inference.
But with Intel's valuation well above historical norms and industry peers, the broker believes it is arguably more susceptible to broader market swings than the likes of Taiwan Semiconductor or Nvidia.
Wedbush expects numbers to move meaningfully higher, helped by potential operating cost reductions following another round of job cuts.
Intel, one of the best-performing stocks in the S&P 500 Index this year, has lost momentum in recent weeks.
The stock has fallen 32% from its year-to-date high and is hovering near its lowest level since May.
That weakness will face a crucial test later this week when the chipmaker reports its quarterly financial results.
INTC stock has enjoyed a remarkable rally this year. Despite its recent pullback, the shares remain up 138% year to date, making Intel one of the best-performing companies in the S&P 500 Index.
The surge has lifted its market capitalization to more than $477 billion, marking a dramatic turnaround for a company that was struggling with declining market share and weak financial performance just a few years ago.
Intel’s surge has been driven by several factors, including its balance sheet improvements.
The Trump administration and Nvidia took a stake in the company, helping it to shore up its finances.
Intel has also benefited from the ongoing demand for CPUs as AI agents become more popular.
It also boosted investor confidence by reaching a deal with Apollo Global to repurchase the 49% equity interest in its Irish fab joint venture. The deal is valued at $14.2 billion and is funded by cash on hand and new debt.
Most recently, Intel has inked major deals, including with SpaceX and Tesla. It has become a partner of Elon Musk’s Terafab project.
In it, the company will provide its 14A manufacturing technology to design, fabricate, and package chips.
Intel is proud to join the Terafab project with @SpaceX, @xAI, and @Tesla to help refactor silicon fab technology.
Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 TW/year of compute to power… pic.twitter.com/2vUmXn0YhH
— Intel (@intel) April 7, 2026 Intel will also manufacture some of Apple’s chips in its Texas plant. While the real production is years away, the deal is a validation for Intel’s turnaround.
In another important development, Google said that it would use Intel’s Xeon processors to power its cloud infrastructure.
While the size of the deal was not revealed, chances are that it will be worth billions of dollars.
Therefore, the upcoming earnings report will provide more information about its turnaround.
Analysts expect these results to show that Intel’s revenue jumped by 12% to $14.42 billion, helped by CPU demand.
In his statement after the last earnings report, Lip-Bu Tan, the CEO, said:
“The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
Analysts are largely bullish on Intel despite its hefty valuation. Yahoo Finance data shows that the average target among analysts is $106.70, up modestly from the current $95.
INTC stock chart | Source: TradingView
The daily chart shows that INTC stock has slumped from the year-to-date high of $142.6 to the current $95.
It has formed a double-top pattern at $132.47. This pattern had a false breakout that pushed it to the highest point this year.
It has now moved below the Major S/R pivot point of the Murrey Math Lines tool. Also, it has slipped below $98.93, its lowest level on June 5.
Therefore, the price will likely drop further in the near term, potentially to the strong pivot, reverse level of $75.
Intel v první polovině roku 2026 vzrostl o 278 %, ale v červenci 2026 se trend obrátil a akcie během jednoho dne klesly až o 10 %. Důvodem je podle textu napětí mezi silným růstem a vysokým oceněním.
After years of decline, Intel (INTC 2.00%) has seemingly revived its fortunes under the leadership of CEO Lip-Bu Tan. The successful adoption of the 18A process, rising demand for CPUs, and increased customer commitments in its foundry business helped the stock rise by 278% in the first half of 2026.
Unfortunately, the stock's fortunes began to reverse course in July, leading to daily drops of as much as 10%. Amid that downtrend, one might wonder whether to buy the dip or run for the hills. Interestingly, the answer may be simply to hold off on any decisions on the chip stock, and here's why.
Image source: The Motley Fool.
Without a doubt, Tan has transformed Intel from a former industry leader in decline to a vibrant competitor.
Its success with the 18A process node means that it could potentially challenge Taiwan Semiconductor Manufacturing (TSMC) in the production of the world's most advanced chips. Also, as CPUs become more critical to data centers, Intel has an incentive to try to take its technical lead back from AMD, whose CPUs surpassed Intel's in terms of performance.
Reports surfaced that Intel's foundry business has begun to win business. Tesla and Apple have signed production agreements with Intel, and other industry giants considered shifting production to Intel as well. This is a massive win for the U.S. as Intel works to shift more production away from the geopolitically contentious Taiwan region.
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Nonetheless, Intel's financial metrics indicate that investors got ahead of themselves in bidding up the stock price. In the first quarter of 2026, Intel's revenue of $13.6 billion rose by 7% compared to year-ago levels. Although that improved over the flat revenue performance during 2025, it is far below other tech giants, which reported revenue growth in the double-digit percentage range.
Additionally, it was a $4.1 billion restructuring charge in Q1 that contributed heavily to its $3.7 billion net loss. Still, when considering the $26 million in net income for 2025 and the $1.5 billion in non-GAAP net income for Q1, investors can at least know that Intel has become profitable again from an operational standpoint.
Furthermore, the aforementioned $26 million profit is too small to offer a meaningful P/E ratio. When looking at the forward P/E ratio, it comes in at 127, and the forward one-year earnings multiple is at 89. Thus, even with Intel on a likely recovery path, the stock price is likely years ahead of the company's anticipated growth.
Intel stock is a likely hold Intel's stock probably fell in recent days due to the stock price moving ahead of fundamentals. Hence, when also considering its forecasted growth, the stock is likely a hold.
Thanks to Intel's technical breakthroughs and recent contract wins, the company again emerged as a competitor in the chip industry. Assuming it stays on that path, it may eventually justify the stock's massive AI rally.
Unfortunately, the high forward multiples imply that the selling trend could continue over the near term. Until that decline stops (or the valuation becomes more reasonable), investors should probably refrain from buying more Intel shares.
Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has a disclosure policy.
Intel rozšiřuje partnerství s Google Cloud o Gemini Enterprise a nové instance C4 a N4, aby automatizovalo práci a zrychlilo vývoj čipů. Firma chce rychleji simulovat návrhy křemíku a zlepšit inženýrské procesy.
Key Takeaways INTC is expanding its Google Cloud partnership to deploy generative AI and accelerate chip development.Intel will deploy Gemini Enterprise to automate tasks and enhance workflows across engineering and operations.INTC is adding Google Cloud C4 and N4 instances to speed silicon design simulations and improve engineering. Intel Corporation (INTC - Free Report) is advancing its enterprise-wide artificial intelligence (AI) transformation through an expanded multi-year collaboration with Alphabet Inc.'s (GOOGL - Free Report) Google Cloud. The partnership will help Intel integrate generative AI and cloud technologies across its global operations to support innovation and business growth.
Under the agreement, Intel will deploy Gemini Enterprise across its workforce, enabling employees to automate tasks and enhance workflows across engineering, supply chain and corporate operations. The platform’s advanced reasoning capabilities will support software development by streamlining coding tasks and automating complex, multi-step workflows.
The company will also utilize the Gemini Enterprise Agent Platform to create custom AI tools for different business functions. In addition, Intel is exploring AI solutions to improve marketing and communications by generating targeted content, identifying relevant subject-matter experts and preparing executive materials more efficiently.
Intel is expanding its use of Google Cloud's high-performance computing infrastructure to speed up chip development. By adding Google Cloud's C4 and N4 instances to its existing computing resources, the company can run more silicon design simulations simultaneously, reducing development time and improving engineering performance. Through this collaboration, Intel aims to strengthen its position in AI-driven enterprise and semiconductor innovation.
How Are Competitors Performing in the AI Space?Intel faces competition from Qualcomm Incorporated (QCOM - Free Report) and Advanced Micro Devices (AMD - Free Report) . Qualcomm is expanding its presence in the AI market by broadening its focus into data center, enterprise and edge. The company has acquired AI software startup Modular to strengthen its AI capabilities and make it easier to develop and deploy AI applications across different hardware platforms. Qualcomm is improving AI features in its Snapdragon chips and working with partners to bring more AI-powered solutions to vehicles, smartphones, PCs and connected devices.
AMD is strengthening its AI business by growing its data center and enterprise AI offerings with its Instinct GPUs, EPYC processors and ROCm software. The company has partnered with Nutanix and Meta to develop AI infrastructure and support large-scale AI deployments. AMD is investing in AI research, infrastructure and innovation to support the growing demand for advanced technologies.
INTC’s Price Performance, Valuation & EstimatesShares of Intel have skyrocketed 319.8% over the past year compared with the industry’s growth of 26.7%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 3.9 book value, lower than the industry average of 25.74.
Image Source: Zacks Investment Research
INTC’s earnings estimates for 2026 have increased 1.9% to $1.07 per share, while those for 2027 have increased 2.1% to $1.47 over the past 60 days.
Image Source: Zacks Investment Research
Intel stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel a AMD ve čtvrtek prudce oslabují kvůli obavám z přebytečné kapacity v čipech a zpomalení růstu cen pamětí HBM. Intel navíc tlačí zprávy o zpoždění výnosných výtěžností procesu 18A až na konec roku 2026 nebo 2027.
Intel (INTC) and Advanced Micro Devices AMD shares are under immense pressure on Thursday morning, amidst what can be described as a “perfect storm”.
A mix of global semiconductor panic, a significant shift in how Wall Street is viewing the AI boom, and painful company-specific realities (for INTC in particular) is hurting the chip names today.
Despite the sell-off, however, both AMD and Intel stocks remain blockbuster investments for 2026 – currently trading at well over 2x their prices at the start of this year.
Intel, AMD, and the broader semiconductor sector are bleeding on July 16 due to two major global catalysts.
South Korean memory giant SK Hynix suffered a “historic” single-session collapse (its worst ever) after reports surfaced that its high-bandwidth memory (HBM) average selling prices are growing slower-than-expected.
This sent shockwaves through the global supply chain. Moreover, while equipment giant ASML recently reported a massive backlog, the market has suddenly inverted its thinking.
Instead of viewing this as a sign of booming demand, investors are worried that chip manufacturing capacity is being built out too fast.
The core anxiety has shifted from “Can they build enough chips?” to “Is the massive capex on AI hardware actually sustainable?”
For Intel and AMD stock, this overcapacity threat points to a steep collapse in pricing power and a severe margin squeeze just as their expensive, next-gen hardware architectures are launching.
INTC shares are taking a harder hit than most chip stocks at writing because the firm’s ambitious turnaround story is hitting major speed bumps.
The bull case for Intel in 2026 relies primarily on its cutting-edge 18A manufacturing process.
But recent reports indicating that profitable yields for 18A are being pushed back to late 2026 or even 2027 are severely deflating investor optimism.
Adding fuel to the fire today, JPMorgan named Intel a top short idea.
The bank said that Intel’s massive year-to-date rally priced in a foundry and artificial intelligence recovery that simply isn’t showing up in concrete financial results yet.
To make matters worse, AMD recently surpassed INTC in quarterly data-center revenue for the first time ($5.8 billion vs. $5.1 billion), showing that Intel is actively losing ground in its most profitable business segment.
After massive gains in the first half of 2026, institutional investors are aggressively taking profits.
There is a visible market rotation underway: funds are pulling capital out of high-beta chip names (like Marvell, Intel, and AMD) and parking it in mega-cap tech giants (like Apple and Google) and Chinese tech names (like Alibaba) that actually spend the AI cash rather than build the hardware.
This isn’t a sign that AI demand is dead.
It’s a valuation and positioning correction. Because both INTC and AMD shares were “priced for perfection”, any sign of friction – whether delayed node or a macro capacity concerns – was bound to trigger a sharp exit.
Intel už používá High-NA stroj ASML v části dnešní produkce čipů, uvedl CEO ASML. Jde o důležitý milník pro přechod této technologie z laboratoře do výroby.
The comment marks a turning point for a technology that, until recently, was viewed as the future of semiconductor manufacturing rather than its present.
From Prototype To Production“Some of the product you buy today from Intel have been created with a High-NA machine,” Fouquet told investors during ASML’s earnings call.
That distinction matters.
For years, ASML’s next-generation High-NA EUV systems — estimated to cost roughly $400 million each — have symbolized the next era of chipmaking. Investors have watched customers line up to buy them, but commercial production has remained the bigger question.
ASML’s latest update suggests Intel has already answered it.
Why Investors Should CareIntel has spent much of the past decade trying to reclaim its manufacturing edge after losing process leadership to Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM).
Its turnaround strategy has relied as much on factories as products, with billions of dollars flowing into advanced manufacturing technology. If Intel can successfully integrate ASML’s newest machines into high-volume production, it could strengthen one of the company’s biggest competitive advantages: its ability to design and manufacture leading-edge chips under one roof.
The announcement also reinforces ASML’s broader message that AI-driven chip demand continues to justify heavy investment in next-generation manufacturing equipment.
The Next Milestone To WatchOne production milestone won’t decide the semiconductor race.
Still, ASML’s comments suggest one thing is no longer theoretical. Its most advanced chipmaking technology has moved beyond the lab — and chips built with it are already reaching customers. For investors watching Intel’s turnaround, that’s a milestone worth paying attention to.
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Intel Foundry začala vyrábět část procesorů Intel Core Ultra Series 3 s technologií ASML High NA EUV na uzlu Intel 18A. Jde o první masově vyráběný logic produkt v oboru s High NA EUV.
High NA EUV reaches new readiness milestone with first high-volume Logic product
Intel Foundry has entered high-volume manufacturing for a subset of Intel® Core™ Ultra Series 3 processors, code-named Panther Lake, using ASML’s EXE High NA EUV technology Specific Intel 18A layers are now dual-qualified on High NA EUV in Oregon, with product shipping to customers at yields matched to the NXE platformIntel and ASML continue to closely collaborate on High NA EUV readiness with flexibility to incorporate into future nodes based on customer needs VELDHOVEN, the Netherlands, July 15, 2026 – ASML Holding N.V. (ASML) today reported that Intel Foundry is using ASML’s High NA EUV technology on the Intel 18A process node to produce a subset of its Intel® Core™ Ultra Series 3 processors. This milestone marks an important step in demonstrating High NA EUV readiness in a production environment.
ASML and Intel have worked closely for decades to advance lithography technology and support the continued scaling of semiconductors. The high numerical aperture extreme ultraviolet (High NA EUV) lithography process is an important next step in EUV lithography, developed by ASML to enable more precise patterning for advanced chip manufacturing.
The Intel® Core™ Ultra Series 3 processors, code-named Panther Lake, are built on Intel 18A. The use of High NA EUV to pattern specific layers of these products provides ASML and Intel Foundry with helpful data to further refine system setup, up time and manufacturing implementation. This paves the way towards broader adoption, utilizing the full capabilities of the technology.
“With increased resolution and better process control, the introduction of High NA EUV marks a substantial development in semiconductor lithography,” said Christophe Fouquet, ASML President and CEO. “We are proud to play a role in enabling the smaller, denser patterning that will accelerate advancements in AI and other emerging technologies.”
“This milestone reflects the close technical collaboration between Intel and ASML and shows how High NA EUV can be integrated into advanced semiconductor manufacturing at scale,” said Naga Chandrasekaran, Executive Vice President and General Manager of Intel Foundry. “By qualifying the High NA EUV process option on select Intel 18A product layers, our existing fleet of tools are providing customers with increased output, while we develop future options to achieve leading-edge performance, density and manufacturing flexibility on upcoming nodes.”
In 2024, Intel and ASML completed integration of the industry’s first commercial High NA EUV lithography system at the company’s Hillsboro, Oregon, R&D site. Intel Foundry was also the first company to install and pass acceptance testing of the second generation, TWINSCAN EXE:5200B, which builds on the TWINSCAN EXE:5000 and increases output and overlay accuracy, along with an improved light source. With this announcement, Intel Foundry is first in the industry to ship high-volume logic product using High NA EUV.
Media Relations contactsInvestor Relations contactsMonique Mols +31 6 5284 4418Jim Kavanagh +31 40 268 3938 Sarah de Crescenzo +1 925 899 8985Pete Convertito +1 203 919 1714 Karen Lo +886 9 397 88635Peter Cheang +886 3 659 6771 About ASML
ASML is a leading supplier to the semiconductor industry. The company provides chipmakers with hardware, software and services to mass produce the patterns of integrated circuits (microchips). Together with its partners, ASML drives the advancement of more affordable, more powerful, more energy-efficient microchips. ASML enables groundbreaking technology to solve some of humanity's toughest challenges, such as in healthcare, energy use and conservation, mobility and agriculture. ASML is a multinational company headquartered in Veldhoven, the Netherlands, with offices across EMEA, the US and Asia. Every day, ASML’s more than 44,500 employees (FTE) challenge the status quo and push technology to new limits. ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML. Discover ASML – our products, technology and career opportunities – at www.asml.com.
Intel začal při výrobě části čipů Panther Lake pro notebooky používat špičkový stroj High-NA EUV od ASML. Cílem je lépe zvládnout tuto technologii a optimalizovat výrobu.
Computer motherboard and Intel chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
SAN FRANCISCO, July 14 (Reuters) - Intel (INTC.O), opens new tab has decided to use a high-end machine from ASML to manufacture some of its flagship Panther Lake laptop chips, ASML said on Tuesday, a move that will help the chipmaker learn to use the tool more effectively.
Following experiments that began in 2024, Intel has begun to use ASML's next-generation high numerical aperture (High NA) extreme ultraviolet (EUV) machines, which print circuit patterns on to microchips, to help produce a portion of its Panther Lake processors, ASML said.
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The industry has debated at what point it makes economic sense to begin deploying the High NA tools, which likely will be needed by chipmakers in the future as they continue to shrink the atomic-sized features that make up chips.
The High NA equipment costs around $400 million, or twice as much as the standard EUV machine. The tool is also technically challenging to introduce into production processes.
Intel is using the High NA tool for specific layers of the chip, which will help Intel and ASML collect data and optimize the equipment.
Intel declined to comment on the announcement.
The company uses its 18A manufacturing process to fabricate the Panther Lake chips and already uses ASML's standard EUV lithography machines to do so. Lithography is the process of using light to draw the complex patterns that make up the circuits on a chip.
Intel received the first High NA tool in 2024 at its Hillsboro, Oregon research and development site where the company develops its new manufacturing techniques and technologies.
Reporting by Max A. Cherney in San Francisco; Editing by Sonali Paul
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron’s magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.
BofA čeká, že AMD překoná odhady a zvýší výhled díky ziskům podílu na trhu, silné poptávce v cloudu a serverovému boomu. Intel a ARM dál brzdí slabé PC a smartphony.
CPU makers Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD), Intel Corp (NASDAQ:INTC, XETRA:INL), Arm Holdings PLC (NASDAQ:ARM) and Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) are all reporting earnings in the coming weeks, and Bank of America says the results will tell very different stories depending on the business.
PC and smartphone sales are still struggling, both down more than 10-15% year-over-year in 2026 estimates. But AI server chips are a different picture entirely. Demand keeps climbing as more companies adopt agentic AI and keep spending on data center buildout.
BofA flagged a few big questions investors should watch this earnings season: how big the server CPU market really is (estimates range from $120 billion to $200 billion or more), whether recent price increases will stick, how much CPU power each new AI system actually needs, whether supply can keep up with demand, and how market share will shake out as more chip options hit the market.
Speed or scale? There's also a real debate brewing over what makes a CPU good at AI. Some, including Nvidia, argue that faster individual cores matter most since they cut down latency on tool calls. AMD sees it differently, arguing that handling many tasks at once and overall rack performance matter more. BofA thinks both sides have a point, and either way, it points to stronger CPU demand ahead.
AMD: expect a beat and raise BofA expects AMD to beat expectations and raise guidance, driven by continued market share gains, strong cloud demand and solid visibility into supply. The firm thinks AMD's next quarterly outlook will include news of the first shipment of its MI455X "Helios" rack, setting up a bigger ramp by Q4 that could hit $6-7 billion a quarter or more. AMD's new Venice server chip is also launching around the same time.
Management last pegged the server CPU market at $120 billion back in May, and BofA thinks that number could climb higher. The firm raised its price target on AMD to $620 from $550, pointing to the company's July 23 "Advancing AI" event as a potential catalyst.
Intel: pricing should cushion the blow PC unit sales remain a drag for Intel, likely down 10-15% or more this year. But BofA expects better pricing on both PC and server chips, plus AI demand, to make up for it. Investors will likely be watching margins in Intel's Products segment, along with updates on its foundry business and next-gen 18A server chips. BofA currently sees Intel's server market share sliding to 24% by 2030, down from 41% last year.
ARM: phones are a drag, servers are the hope ARM's royalty revenue is still tied mostly to smartphones, where volumes are expected to keep falling through 2027. Big content gains from newer chip architectures are mostly already priced in. The bigger opportunity, server wins with Google and Microsoft, likely won't show up until the back half of 2026 or later. One wildcard: ARM's AI chip business could see demand outstrip supply by 2027-28, which BofA says could become a real swing factor.
Intel uvedl, že vyšší než očekávané tržby Xeonů byly taženy poptávkou hyperscalerů po host CPU pro AI servery. To naznačuje, že AI přináší firmě růst i mimo Gaudi.
SUQIAN, CHINA - JUNE 1, 2026 - A netizen is using his mobilephone to view intel logo and using his computer to view intel webpage in Suqian, Jiangsu, China on June 1, 2026. (Photo credit should read CFOTO/Future Publishing via Getty Images)
CFOTO/Future Publishing via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
Underlying the semiconductor manufacturer's rising stock price was a story that went unnoticed: the subtle yet significant revival of its oldest and most powerful product.
As we approached mid-2025, it was understandable to think that Intel (INTC) might be a value trap on its path to becoming an artifact of the past. Based on its fiscal Q1 2025 outcomes, the firm's trailing twelve-month revenues declined by 4.0% compared to the previous year, and it was facing a profoundly negative net margin of -36%. The figures were dismal enough to spark entire discussions about the margin squeeze jeopardizing Intel stock. The options market was lackadaisical, with implied volatility residing in the calm 35th percentile of its annual spectrum just weeks before the surge commenced.
By all indications, this was not a stock poised for a 369% increase.
What Was Being Overlooked By The Market?A portion of the narrative was a classic diversion. All attention was directed towards Intel's initiative to develop a specialized AI accelerator chip, Gaudi, to rival industry leaders. The news, however, on that front was disappointing. In late 2024, the management acknowledged that the adoption of Gaudi was "slower than we anticipated" and that it would fall short of its revenue goals. By early 2025, the company disclosed its decision to cancel the next-generation version, an internal venture, as a marketable product. For those monitoring Intel’s direct challenge in the AI training sector, the situation appeared to be a setback.
Yet this narrative missed the company's fundamental strength.
What Was Management Indicating Regarding Its Core CPU Division?While the Gaudi narrative faltered, another, more impactful one was gaining momentum in the background, frequently during the same earnings calls. Management began to subtly yet consistently discuss the changing landscape of AI. They asserted that the dialogue was transitioning from merely training models to effectively utilizing them for inference, a workload where the traditional server CPU, the Xeon, held a pivotal role.
As early as October 2024, the CEO proclaimed that this solidified Intel's status as the 'preferred head node in AI servers,' emphasizing that as the industry progressed toward inference, it would rely on workloads that were 'far more CPU-centric.' By January 2025, his successor underscored the company’s "leading position as the host CPU for AI servers" and the "substantial opportunity for CPU-based inference." The argument was evident: the impending wave of AI would generate tremendous demand for CPUs alongside GPUs.
When Did This Narrative Begin To Appear In The Financial Outcomes?A compelling story is one aspect; actual figures are another. The final indication came in April 2025, coinciding with the company's fiscal Q1 results. The report itself was mixed, but the specifics were revealing. The CFO had achieved figures at the upper end of their guidance, explicitly stating that it was "driven by better-than-expected Xeon sales."
What fueled this strength? He indicated it was "driven by hyperscaler demand for host CPUs for AI servers." The understated narrative had finally made its way to the income statement. DCAI revenue, the segment encompassing those chips, exceeded expectations. It marked the first concrete indication that the increasing significance of the CPU in the AI epoch was a real, revenue-generating phenomenon.
The indicator was not in a flashy new offering, but in the market rediscovering how indispensable Intel’s oldest product line was to the latest technological trend.
And if it is broad exposure to semiconductors you seek, rather than pursuing the next single entity to surge, a semiconductor ETF like SOXX encompasses that entire sector.
Recognizing a setup prior to its rise is a genuine advantage, yet a stock you are enthusiastic about can easily become an oversized portion of your portfolio, and the same volatility that fuels a surge can also reverse it. Concentration can convert that downturn into significant losses, and selling to reduce it incurs a tax liability. There exists a method to secure the profits and diversify without the tax implications.
Intel investuje kapitálově 5 miliard eur (5,7 miliardy USD) do modernizace irského areálu v Leixlipu a rozšíření evropské výroby pro AI a high-performance computing. Investice má vytvořit několik stovek pracovních míst.
The Intel logo at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesInvestment to add several hundred jobs at Irish operationMajority of investment to be deployed by end-2027LEIXLIP, Ireland, July 13 (Reuters) - Intel (INTC.O), opens new tab has begun a €5 billion ($5.7 billion) capital investment to upgrade its Irish campus and expand its European output to meet growing global demand for AI and high-performance computing, the U.S. chipmaker said on Monday.
Intel said the move would upgrade and maximize capacity at its facility in Leixlip outside Dublin that produces Intel 3 silicon wafers, which the company says is the most advanced semiconductor manufacturing facility of its kind in Europe.
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It will also link the facility to other factories at the campus, Intel's European manufacturing base, as well as advance research and development and retrain staff, Naga Chandrasekaran, executive vice president of Intel Foundry, said.
Intel is one of the key multinationals in Ireland's foreign investment-focused economy, having already invested €30 billion in the country since 1989, more than half of which was spent between 2019 and 2023 on the fabrication facility that doubled the available capacity in Ireland.
The leading-edge manufacturing equipment that Intel has begun to install will help deliver Intel Xeon 6 processors and next-generation Intel Xeon built on the group's Intel 3 manufacturing process, the company said.
"The demand for servers, the demand for AI is driving a significant increase in the need for Intel 3 wafers," Chandrasekaran told reporters.
Chandrasekaran said the investment would add "several hundred" more jobs to the 4,900 people Intel employs in Ireland.
The majority of the investment would be made by the end of 2027 and represents about 30% of Intel's $17 billion planned capital expenditure for 2026, he added.
Ireland is hugely reliant on the taxes and jobs of foreign multinationals such as Intel. Foreign-owned firms have almost doubled their Irish workforce in the last decade to make up 11% of the entire labour market.
Irish Prime Minister Micheal Martin said Intel's latest investment was a powerful vote of confidence in Ireland and its position as a location for advanced manufacturing.
($1 = 0.8750 euros)
Reporting by Padraic Halpin; Editing by Sarah Young and Tomasz Janowski
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Intel letos více než zdvojnásobil hodnotu, ale JPMorgan ho dál řadí mezi top shorty. Banka tvrdí, že trh už oceňuje úspěšný obrat, který se teprve musí prokázat.
Intel Corp’s (NASDAQ:INTC) turnaround has become one of Wall Street’s favorite semiconductor trades.
The stock has more than doubled this year as investors bet the company can reclaim its manufacturing edge and emerge as a major AI winner. JPMorgan, however, thinks the rally may have already priced in a recovery that still needs to be proven.
• Intel shares are retreating from recent levels. Why are INTC shares down?
The Turnaround Everyone Is Betting OnIntel’s resurgence has been driven less by what the company has already accomplished and more by what investors believe it can become.
The market has embraced the idea that Intel can rebuild its foundry business, attract major third-party chip customers and regain relevance in an AI-driven semiconductor industry. That optimism has helped make the stock one of this year’s strongest performers.
JPMorgan isn’t convinced those expectations match today’s fundamentals.
Why JPMorgan Thinks the Rally Has Gone Too FarThe bank’s thesis isn’t that Intel lacks a turnaround strategy.
Instead, semiconductor analyst Harlan Sur argues investors are already valuing Intel as though that turnaround has largely succeeded.
According to JPMorgan, Intel’s foundry business still generates only minimal external customer revenue, continues to post deeply negative margins and has yet to demonstrate broad third-party customer adoption. Meanwhile, the company’s traditional client and server processor businesses continue to lose market share.
In other words, JPMorgan believes the stock reflects tomorrow’s success while many of the operational milestones remain works in progress.
A Broader Theme Across JPMorgan’s Short ListIntel isn’t the only company on JPMorgan’s list where expectations appear to be running ahead of execution.
The bank warned that increasing competition from providers with larger GPU capacity could pressure pricing for AI cloud infrastructure company IREN, while it argued AI-native website builders are beginning to chip away at Wix’s competitive moat by shifting users toward lower-margin AI products.
The common thread isn’t weak businesses. It’s JPMorgan’s view that investors may have become too optimistic about how quickly these companies can deliver on their long-term narratives.
What Investors Should WatchFor Intel, the next chapter of the turnaround won’t be written by AI headlines alone.
Investors will likely be looking for evidence that the company’s foundry business can attract meaningful external customers, improve profitability and stabilize its core PC and server franchises.
Until then, JPMorgan believes the stock’s remarkable rally may have moved faster than the fundamentals.
Photo: PJ McDonnell / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Intel ve 1. čtvrtletí 2026 zvýšil ne-GAAP provozní marži na 12,3 % z 5,4 % díky růstu tržeb a nižším nákladům. Provozní zisk vzrostl na 1,7 miliardy USD z 0,7 miliardy USD.
Key Takeaways Intel's non-GAAP operating margin rose to 12.3% from 5.4% as revenues and profitability improved.INTC benefited from AI PC demand, Xeon growth, lower operating costs and stronger execution.Intel Foundry narrowed losses sequentially, but investment in advanced manufacturing weighed on margins. Intel Corporation (INTC - Free Report) reported non-GAAP operating income of $1.7 billion in the first quarter of 2026, up from $0.7 billion in the year-ago quarter. The non-GAAP operating margin rose to 12.3% from 5.4% a year ago. Such a sharp improvement in profitability is driven by multiple factors.
The company reported strong revenue growth during the first quarter. Client Computing Group (“CCG”) revenues increased to $7.73 billion from $7.63 billion, driven by strong demand for client CPUs and growing adoption of AI PCs. Datacenter and AI Group (“DCAI”) revenues improved to $5.05 billion from $4.13 billion, driven by strong demand for Xeon server CPUs for AI workloads, higher ASIC sales and new long-term customer deals with leading firms like Google. Operating margin in DCAI substantially increased to 30.5% from 13.9% a year ago, while CCG’s operating margin increased to 32.6% from 30.9%.
Intel's margin expansion also benefited from disciplined cost management. Non-GAAP research and development costs and marketing, general and administrative expenses declined 9% year over year to $3.9 billion. Lower operating expenses, combined with stronger revenue growth, supported a strong improvement in profitability.
Operational execution played a crucial role in margin expansion. Disciplined execution, improving factory output and expanding available supply allowed Intel to match rising customer demand despite supply constraints.
Although Intel Foundry's operating loss narrowed sequentially, the segment remained a drag on the company's overall profitability. Higher investments in Intel 14A and the ramp-up of advanced manufacturing technologies continued to pressure the segment's margins despite improving manufacturing yield and execution.
How Are Competitors Faring?Intel faces competition from Advanced Micro Devices (AMD - Free Report) and Broadcom, Inc. (AVGO - Free Report) in the semiconductor space. AMD's non-GAAP operating income climbed to $2.54 billion, up 43% year over year, as AMD’s top-line growth translated into operating leverage. Data Center operating income increased to $1.60 billion (up 71.6% year over year), translating to a 27.7% operating margin compared with 25.4%. A richer mix of high-margin Data Center products, particularly EPYC server CPUs and Instinct AI GPUs, is driving AMD’s margin.
Broadcom’s operating margin rose 52.4% year over year to a record $14.9 billion, reflecting strong operating leverage as non-GAAP operating margin expanded 200 bps year over year to 67.3%. Disciplined cost management combined with strong revenue growth is driving Broadcom’s operating margin. Revenues are propelled by strong demand for networking products and custom AI accelerators.
INTC’s Price Performance, Valuation & EstimatesShares of Intel have skyrocketed 372.5% over the past year compared with the industry’s growth of 32.5%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 4.53 book value, lower than 25.74 of the industry average.
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 sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel uvedl, že jeho plán obratu se blíží k 200 miliardám USD, přičemž za poslední čtvrtletí vykázal šesté po sobě jdoucí překonání odhadů tržeb. Tržby dosáhly 13,577 miliardy USD a non-GAAP EPS činil 0,29 USD.
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Intel (NASDAQ:INTC | INTC Price Prediction) has anchored its comeback story on a capital program that keeps getting bigger. Management disclosed in its Q3 2025 report that the effort is part of more than $100 billion Intel is investing to expand domestic operations.
Layered on top of this $100 billion figure is a $5.0 billion NVIDIA (NASDAQ:NVDA) equity investment, a $2.0 billion SoftBank investment, $8.9 billion in CHIPS Act funding, the Fab 34 Ireland buyback funded with roughly $7.7 billion cash and $6.5 billion in new debt. That’s on top of the highly-anticipated TeraFab partnership with SpaceX, xAI, and Tesla (NASDAQ:TSLA).
Add it all up, and the turnaround plan pushes toward the $200 billion mark. That is the lens through which the latest quarter has to be judged.
What It Means This number is massive, but it represents a capital program that large is only credible if the operating business is bending in the right direction. I think it is.
The company’s Q1 FY26 revenue came in at $13.577 billion versus a $12.431 billion estimate, good for a 9.22% beat. Importantly, Intel’s management team flagged this past quarter as the sixth consecutive session of revenue above expectations. Non-GAAP EPS was $0.29 against a $0.0127 consensus, while non-GAAP gross margin expanded to 41.0%, up from 39.2% a year earlier.
The segment mix is where the $200 billion bet earns its keep. Data Center and AI revenue reached $5.052 billion (up 22% year over year), Intel Foundry revenue hit $5.421 billion (up 16%), and Client Computing came in at $7.727 billion, up 1%.
With a strong balance sheet supported by cash and equivalents climbed to $17.247 billion, up 92.77% year over year, and shareholders’ equity rising 25.29% to $124.989 billion, I think Intel’s CFO David Zinsner is on to something big when he told analysts the company’s “collective AI-driven businesses now represent 60% of revenue and grew 40% year-over-year.”
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Bull Case The bull argument around Intel rests on a simple observation. That is, the company’s capital plan is scaling right as the product portfolio is inflecting.
Intel CEO Lip-Bu Tan told analysts, “A year ago, the conversation about Intel Corporation was about whether we could survive.” Today, it is about how quickly we can add manufacturing capacity and scale our supply to meet enormous demand for our products.” He added that 18A wafers are now running ahead of internal projections, and Intel 14A maturity, yield, and performance are outpacing Intel 18A at a similar point in time.
The commercial validation is stacking up in parallel. Intel signed a multiyear partnership with Alphabet (NASDAQ:GOOGL) covering custom ASIC IPU co-development, and Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8 systems. The company’s ASIC franchise is already running at north of a billion dollars, and on unmet demand, Zinsner said only that the number “starts with a ‘b.'” Tan framed the structural setup as “This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
Q2 FY26 guidance points to sequential progress: revenue of $13.80 billion to $14.80 billion, non-GAAP EPS of $0.20, and non-GAAP gross margin of about 39.0%. Rather than open-market buying, insider activity shows up in large equity grants to key operational executives in late May, suggesting management is being compensated for turnaround execution.
Bottom Line Long-term holders are being asked to underwrite one of the largest capital programs in U.S. semiconductor history, and the operating numbers so far are cooperating. Six straight revenue beats, DCAI up 22%, Foundry up 16%, margins expanding, and a partner list that now includes Google, NVIDIA, SoftBank, SpaceX, xAI, and Tesla is the kind of scaffolding a $200 billion story needs.
The next test is dated. That is, the company’s upcoming Q2 2026 earnings report on July 23, 2026, after market close. This report will tell investors whether the turnaround is compounding, or whether the $200 billion price tag is running ahead of the payoff.
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AMD v 1. čtvrtletí dosáhla v datových centrech tržeb 5,8 miliardy USD, což je více než Intel ve stejném byznysu. Segment vzrostl meziročně o 57 % a stal se největší a nejrychleji rostoucí částí firmy.
For decades, the data center was Intel's kingdom. It designed the processors that ran the world's servers, and AMD (AMD +5.71%) was an afterthought. That era is over.
In its first quarter of 2026, AMD's data-center segment generated $5.8 billion in revenue -- more than Intel (INTC +1.97%) pulled in from the same business over the same stretch. It was another quarter in which AMD out-earned its old rival in the data center, and it reframes the investment case for both stocks.
So, which one does the shift favor from here?
Image source: The Motley Fool.
AMD: the data-center engine takes over AMD's first-quarter data-center revenue rose 57% year over year to $5.8 billion. That was the standout line in a strong quarter. Total revenue climbed 38% to $10.3 billion, and data center is now the company's largest and fastest-growing business.
Profitability moved with it. AMD's non-GAAP (adjusted) earnings per share came in at $1.37, and even on a GAAP basis the company earned $0.84 per share and $1.4 billion in net income, at a gross margin above 50%. This is a business growing quickly and making money as it does.
One caveat is worth noting. AMD's data-center segment includes its Instinct artificial intelligence (AI) accelerators, not just server processors, so part of the crossover is a graphics-chip story rather than a pure server-CPU win. In server processors alone, AMD still ships fewer units than Intel.
But even there, the trend runs AMD's way. It now captures close to half of all server-CPU revenue while shipping only about a third of the units -- a sign customers are paying up for its higher-end parts.
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The stock reflects all of it. AMD shares are up more than 250% over the past year, and the momentum shows little sign of fading.
Both halves of the data-center business are pulling their weight: EPYC server processors for cloud providers, and Instinct accelerators for AI workloads. As long as that mix keeps growing, AMD's profit engine keeps getting stronger.
Intel: cheaper, but for a reason Intel's data center and AI group is still sizable, generating $5.1 billion in first-quarter revenue, up 22% year over year. That is healthy growth. And by total revenue, Intel remains the larger company, with more than $50 billion in sales over the past year to AMD's roughly $37 billion. Losing the data-center lead stings precisely because Intel is still the bigger business.
The trouble is everything around that growth. Intel is unprofitable on a trailing basis, dragged down by a foundry unit spending heavily to catch up in manufacturing. In the first quarter, that unit brought in less than $200 million from outside customers and lost money.
And the stock has fallen about 21% in just the past week, on reports that its critical 18A manufacturing process may not reach profitable yields until 2027.
The bull case, of course, is that Intel is cheap and turning around. Its most advanced process could still inflect, and its data-center revenue is growing again. For patient investors, that is a genuine value setup.
But cheap can stay cheap. Intel trades at more than 100 times expected earnings precisely because those earnings are depressed today, and the turnaround keeps taking longer than management promises.
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Which stock the shift favors So which is the better buy? Line the two up, and the contrast is stark. AMD is growing faster, earning more in the data center, and turning that growth into profit. Intel is cheaper, but it is losing money, ceding server share, and waiting for manufacturing to ramp up.
The main issue, of course, is valuation. AMD is not cheap. It trades at about 59 times forward earnings, a rich multiple that already bakes in much of its momentum. If data-center growth cools, the stock arguably has room to fall.
So neither is a bargain. Intel is a deep-value bet on a turnaround with a real chance of disappointing. AMD is a premium-priced bet on continued execution.
Between the two, I'd side with AMD. Paying up for the business that is actually winning its market -- growing 38% and converting that growth into profit -- strikes me as the better risk than betting on a rival to undo years of manufacturing setbacks on a timeline it keeps missing. The data-center crown has changed hands, and I think it stays changed.
Akcie Intelu za týden spadly asi o 21 %, protože se zpožďuje nástup výrobního procesu 18A. To oddaluje ziskovost foundry, zatímco AMD v datových centrech předstihl Intel.
For most of 2026, Intel (INTC +2.68%) was the comeback story of the chip sector. The stock had more than tripled on the belief that its new 18A manufacturing process would finally put the company back on the leading edge. Then, over the past week, the rally came apart.
Intel shares have tumbled about 21% in a week, trading at about $110 as of this writing. That is a jarring reversal for one of the market's best performers this year.
So what actually broke the rally? Three separate pressures landed at nearly the same time. Here's a look at each -- and which one should matter most to investors.
Image source: Getty Images.
The 18A payoff got pushed out Intel's whole 2026 run rested on one idea: that 18A, its most advanced process, would ramp this year and pull the money-losing foundry business toward profitability.
Reports over the past week complicated that story. According to industry reports, 18A yields (the share of chips that come off the line usable) may not reach profitable levels until late 2026 or 2027 -- later than bulls had assumed.
That timing matters because Intel is still losing money in manufacturing. In the first quarter of 2026, Intel foundry generated less than $200 million in external customer revenue and posted a steep operating loss. The longer 18A takes to yield well, the longer investors wait for the payoff on a stock that had already priced success in.
Yields aren't a minor detail, either. Every chip that comes off the line unusable is wasted wafer cost, so weak yields squeeze Intel's revenue and its margins at the same time.
This is the pressure that should worry shareholders most. The other two are about competition and mood. This one goes to the heart of why the stock ran in the first place.
AMD passed it in the data center In the first quarter of 2026, AMD out-earned Intel in the data center.
In the first quarter of 2026, AMD's data-center segment generated $5.8 billion in revenue, up 57% year over year. Intel's own data-center business brought in $5.1 billion, up a respectable 22%. The crossover stings, because data-center chips have been Intel's stronghold for decades.
There is some nuance worth noting. AMD's segment includes its Instinct artificial intelligence (AI) accelerators, not just server processors, so part of that lead is a graphics-chip story. Specifically for server processors, Intel still ships about two-thirds of the units. But it now collects only a little more than half the revenue, because AMD keeps winning the higher-priced chips.
Either way, the direction is clear: Intel's grip on its most profitable market is loosening.
A sectorwide sell-off did the rest The final pressure had nothing to do with Intel specifically. A widely read note from a big bank warned of bubble-like conditions in AI stocks, and even a record profit from memory maker Samsung -- read as a sign the memory boom was peaking -- did nothing to lift the mood. Chip stocks sold off across the board.
Intel, already wobbling on its own news, fell harder than most. When sentiment turns against a whole sector, the names with the shakiest stories tend to get hit worst -- and Intel had just handed the market two fresh reasons to worry. The sell-off erased roughly a fifth of the company's market value in a matter of days.
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Does the crash change the case? So has a 21% drop made Intel a bargain? I don't think it's that simple.
Two of the three pressures are arguably just noise. Sector sentiment will swing back eventually, and AMD's data-center lead, while real, was hardly a secret. But the 18A delay is different. It pushes out the single event the bull case was built around, even as the foundry is still burning cash.
And even after the drop, Intel isn't obviously cheap. It's unprofitable on a trailing basis, and its stock still trades at more than 100 times expected earnings over the next 12 months -- a far richer multiple than the broader market, which sits in the low-to-mid 20s.
To be fair, Intel's data-center revenue is still growing, its foundry is slowly signing up outside customers, and 18A may yet ramp on a reasonable timeline. But the stock had been priced for that ramp to materialize this year, and that assumption just took a real hit. Personally, I'd want hard evidence that 18A yields are improving before treating this crash as an opportunity rather than a warning.
Intel Foundry v 1. čtvrtletí utržil 5,4 miliardy USD, ale tržby od externích zákazníků byly jen 174 milionů USD. Provozní ztráta činila 2,4 miliardy USD.
SUQIAN, CHINA - JUNE 1, 2026 - A netizen is using his mobilephone to view intel logo and using his computer to view intel webpage in Suqian, Jiangsu, China on June 1, 2026. (Photo credit should read CFOTO/Future Publishing via Getty Images)
CFOTO/Future Publishing via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
Intel’s (INTC) shares have surged more than 5 times in the last year, advancing from approximately $19 to a recent level around $120. Intel has increased its market capitalization by nearly $500 billion, which is certainly a significant figure.
There are two primary factors contributing to this growth.
Revived CPU demand, with autonomous AI tasks rendering server processors more integral to the AI infrastructure than anticipated a year ago. The broader storyline has been enthusiasm around Intel Foundry, the manufacturing division led by CEO Lip-Bu Tan who aims to establish it as a legitimate external enterprise.
The rationale for investment is quite clear. AI is fueling the need for advanced manufacturing capabilities, customers are seeking to reduce reliance on Taiwan, and Intel is the sole U.S. firm that both designs and fabricates state-of-the-art chips domestically. The organization is striving to evolve its foundry operation from merely a cost center into a world-class contract manufacturer.
Nonetheless, the disparity between the narrative and the financial reality is substantial. External clients account for only a small fraction of foundry income, losses remain considerable, and the strategy has altered several times within just two years. If Intel Foundry is genuinely poised to become a leading semiconductor enterprise, where are the evidence points?
What Q1 2026 Actually IndicatesIntel Foundry achieved $5.4 billion in revenue during Q1 2026, an increase from $4.7 billion in the previous year. External foundry revenue was recorded at $174 million. The operating deficit stood at $2.4 billion, remaining largely unchanged from the $2.3 billion deficit the previous year. For the entire year of 2025, total foundry revenue was $17.8 billion, with external contributions a mere $307 million, alongside a $10.3 billion operating loss for that year. The foundry continues to serve predominantly as an internal supplier for Intel’s own chip designs. This distinction is significant. Manufacturing chips for Intel verifies the technology, yet the financial viability of a foundry only improves when external clients have sufficient trust in the process to commit to large production volumes.
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A Strategy That Has Frequently AlteredUnder Pat Gelsinger’s leadership, Intel established 18A as the premier node for both internal products and external clientele simultaneously. When Lip-Bu Tan assumed leadership in 2025, he shifted the external emphasis towards the subsequent node, 14A, primarily viewing 18A as an internal-only process due to its initial yield difficulties. Enhanced yields and renewed interest from customers in 2026 prompted Intel to once again promote 18A and a new variant, 18A-P, to foundry clients. These shifts in strategy generate uncertainty for customers making multi-billion-dollar, multi-year manufacturing commitments, where stability in processes and consistent roadmaps is vital.
Yield Is Improving, Yet Still Trails TSMCAlthough Intel does not disclose yield information for its manufacturing nodes, industry evaluations indicate that Intel 18A yields are currently within the 50% to 60% range for the Panther Lake compute tile, with further improvements anticipated as production matures. Yields are crucial since they dictate the quantity of functional chips produced from each wafer, directly impacting production costs, profit margins, and a foundry's competitiveness in attracting external customers. Even so, Intel's yields are likely still inferior to those of a fully developed leading-edge TSMC process, where yields frequently surpass 70% to 80%, dependent on die size.
Who’s Actually Expressed InterestMicrosoft (MSFT) has confirmed a custom silicon partnership with Intel, though the specific manufacturing node has not been revealed. AWS is collaborating with Intel on custom Xeon and AI fabric chips, while Apple (AAPL) is reported to have received an initial Intel 18A-P design kit for assessment. Nvidia (NVDA) and SoftBank have also acquired equity in Intel, indicating their confidence in the company’s overarching strategy, although this does not equate to a commitment to produce chips at Intel Foundry. It is crucial to understand the significant distinction between evaluating a process, obtaining a design win, and committing production quantities. Receiving a design kit or verifying a manufacturing process represents an early milestone, but substantial foundry revenue is realized only when clients pledge wafer volumes and transition into mass production.
The Evidence Points Still RequiredThe forthcoming evidence points are clear-cut: a substantial external client committing to significant production volumes, sustained high yields at a commercial scale, and external revenue forming a significant portion of foundry sales. Until these metrics improve, Intel Foundry stands as an encouraging manufacturing platform, but not yet as a demonstrated foundry enterprise.
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Intel v červnu vzrostl o 21,8 % poté, co trh zareagoval na možné partnerství se společností Apple pro výrobu čipů v USA. Další podporu dává rostoucí význam CPU při inferenci v AI.
Shares in Intel Corporation (INTC 5.61%) soared by 21.8% in June, according to data from S&P Global Market Intelligence. There are probably two reasons for the increase, and both speak to the business's longer-term growth potential.
Intel and Apple make an agreement? While its important to note that neither company has confirmed reaching an agreement, in mid-June President Trump announced that Apple (AAPL +4.88%) amd Intel had reached an agreement that they would design and manufacture chips in the U.S. The deal, if confirmed, would be good news for Intel's foundry business as it tries to build scale and better compete with market leader Taiwan Semiconductor (TSM 2.15%).
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A deal would also be in line with the Trump administration's determination to encourage domestic manufacturing, and particularly with key technology providers like Apple. For example, the administration invested and entered into a public-private partnership with rare-earth company MP Materials in July of last year, which was closely followed by a $500 million long-term supply agreement for rare earth magnets between MP Materials and Apple. Given that the Trump administration also invested in Intel in 2025 (acquiring 10% of the company), it's reasonable to expect more pressure for an Apple/Intel deal.
Intel's core business has growth prospects Intel's core business of making central processing units (CPUs) is often seen as secondary to the AI data center build-out, as graphics processing units (GPUs) from Nvidia and others have grabbed attention. GPUs are specialized for building and training large language models (LLMs) and are therefore essential to the buildout of AI infrastructure. Meanwhile, CPUs are used relatively more for inference, such as the AI applications that agents actually run.
Image source: Getty Images.
Indeed, Intel CFO David Zinsner noted on the April earnings call that the GPU-to-CPU ratio in training solutions was up to 8:1, but could drop to 3:1 in inference. He expounded on those remarks in June at a Bank of America technology conference, stating, "the ratio of CPUs to GPUs is growing meaningfully as we get from training to inference, inference to agentic and multiagent and reinforced learning. So it's just going to drive a lot of CPU requirements."
As the market's recognition of the longer-term growth potential in inference AI spending crystallizes, Intel's role in CPU manufacturing will likely be better recognized.
Where next for Intel An Apple deal would be good news, and its confirmation would probably be good news for the stock. Meanwhile, the ongoing recognition of the growing importance of inference spending should also create upside potential for the stock.
Bank of America is an advertising partner of Motley Fool Money. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intel, MP Materials, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Intel letos prudce vzrostl díky silné poptávce po procesorech pro AI servery a obnovené důvěře ve foundry byznys. V prvním čtvrtletí tržby divize data center a AI stouply o 22 % na 5,1 miliardy USD.
A $10,000 investment in Intel (INTC 5.61%) at its Jan. 2 closing price of $39.38 would have bought about 254 shares. At Thursday's close of $120.35, that stake is worth about $30,561 as of this writing. In six months, the money more than tripled.
But two footnotes belong next to that figure. First, it was briefly even better: at Intel's June 30 close of $139.63, the same stake was worth more than $35,000, before the stock gave back about 14% across the first two trading sessions of July. Second, almost nobody saw this coming. In January, Intel was still widely viewed as the chipmaker that had missed the artificial intelligence (AI) boom.
Which raises the question for everyone who watched from the sidelines: What turned Intel into 2026's most dramatic large-cap comeback, and what has to keep going right from here?
Image source: Getty Images.
How Intel tripled The rally wasn't built on PCs. It was built on two things: booming demand for the processors that feed AI data centers, and renewed faith in Intel's foundry -- the company's long-suffering bet on manufacturing chips for other companies.
Intel's first-quarter results, reported in April, showed both engines running. Revenue in the company's data center and AI segment rose 22% year over year to $5.1 billion, and Intel Foundry revenue grew 16% to $5.4 billion, while the classic PC chip business grew just 1%. Total revenue rose 7% to $13.6 billion, and non-GAAP (adjusted) earnings per share more than doubled, to $0.29.
"This deliberate reset to how we operate drove a sixth consecutive quarter of revenue above our expectations, as well as new and deepened relationships with strategic partners," said CEO Lip-Bu Tan in the company's first-quarter earnings release.
For years, the foundry consumed cash and produced doubt. What changed in 2026 is that customers -- and investors -- began treating the manufacturing turnaround as on schedule. Each new commitment matters twice over. It brings future revenue and signals to prospective customers that Intel's factories can be trusted with cutting-edge work.
Add a chip sector in full boom, and the repricing was violent. A stock that entered the year priced for slow decline exited June priced for a successful transformation.
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What has to keep going right But now Intel investors face a problem: At a valuation of about $604 billion, Intel is priced as if both its transformation succeeds and its business will grow rapidly for years to come -- even though the company remains unprofitable over the trailing 12 months. When a stock reprices from skepticism to confidence this quickly, the burden of proof shifts to every subsequent quarter.
The next test arrives July 23, when Intel reports second-quarter results.
When the report is released, three things will arguably matter most: whether foundry revenue continues growing, whether gross margins continue to expand, and whether new customer names continue to arrive. Because the gap between today's revenue and today's price tag is bridged almost entirely by future contracts and expanded profitability.
Meanwhile, the stock's early July slide is a preview of what happens when confidence wobbles. Shares of Intel fell about 9% in a single session on July 1 amid a broad pullback in chip stocks, with no company-specific stumble required. After a run like this year's, many of the stock's owners arrived recently and can leave quickly, which could make drawdowns sharper.
So what should investors who feel they missed it do? The honest answer is that the stock's single biggest repricing -- from left-for-dead to credible -- is probably already over. From here, returns likely have to be earned the slow way, through quarters of foundry growth and proof that profits are following the revenue.
I wouldn't chase the stock after a triple, and I personally wouldn't buy ahead of the July 23 report either. But for patient investors who believe American chip manufacturing has years of demand ahead of it, Intel remains one of the most direct ways to own that idea. Bought gradually, in a position sized to survive the swings a stock like this all but guarantees, it can still earn a place in a long-term portfolio.
Intel klesl asi o 5 % spolu s širším výprodejem polovodičů, přesto HSBC zvýšila cílovou cenu na 200 USD ze 100 USD a ponechala doporučení Buy. Akcie jsou letos stále výše o více než 200 %.
Intel shares INTC fell around 5% on Thursday as semiconductor stocks extended their pullback, even as analysts at HSBC raised their price target on the chipmaker.
The decline came amid a broader selloff across the semiconductor sector.
The VanEck Semiconductor ETF dropped 3%, with chip-equipment makers Teradyne and KLA each falling about 8%.
Nvidia shares declined 1.2%, while Micron Technology lost 3.4%.
The weakness follows a remarkable first half for semiconductor stocks.
The VanEck Semiconductor ETF gained more than 70% during the first six months of 2026, marking the strongest first-half performance since the fund's launch in 2000.
Following that historic rally, investors have increasingly been taking profits across the sector, leading to a pullback in many of the industry's biggest winners.
Despite Thursday's decline, Intel remains one of the standout performers in the semiconductor space this year.
The stock is still up more than 200% year to date, reflecting growing investor optimism around the company's role in the next phase of artificial intelligence infrastructure spending.
HSBC raised its price target on the stock to $200 from $100 while maintaining a Buy rating.
The new target represents the highest price objective currently on Wall Street for the shares.
HSBC analyst Frank Lee said the firm sees increasing upside from Intel's server processor business as demand for data-center infrastructure continues to grow.
“Intel is well positioned to deliver upside to 2026/27 server CPU shipments, driven by internal foundry capacity reallocation,” Lee wrote in a note to clients.
The analyst said HSBC raised its estimate for 2026 server CPU shipment growth to 25% year over year from 20%, resulting in a projected $24.1 billion in data center and AI revenue, roughly 4% above consensus estimates.
Lee added that Wall Street may still be underestimating Intel's longer-term growth potential despite recent upward revisions to forecasts.
For 2027, HSBC increased its server CPU shipment growth estimate to 30% from 20%, citing expanding manufacturing capacity and the continued rollout of Intel's 18A process technology.
The firm now forecasts Intel's 2027 data center and AI revenue at $33 billion, approximately 20% above consensus expectations.
HSBC also pointed to improving prospects for Intel Foundry, which it now includes in its valuation model.
According to Lee, capacity constraints across the semiconductor industry are encouraging customers to explore alternatives to existing suppliers.
“With TSMC’s additional 3nm capacity coming online only in 2H27, customers are exploring new foundry partners,” Lee wrote.
The analyst said Intel has emerged as a potential beneficiary, citing customer wins with Terafab and Apple and ongoing engagement with Google and Nvidia.
Lee also highlighted Intel's Embedded Multi-die Interconnect Bridge, or EMIB, packaging technology as a potential competitive advantage.
According to HSBC, packaging capacity remains a bottleneck across the industry, and Intel's EMIB solution offers greater scalability than some competing technologies.
The firm expects increasing external customer commitments beginning in the second half of 2026 as foundry demand expands.
Key Takeaways Intel is expanding AI PCs and networking offerings with new Core Ultra, Arc G-Series and Ethernet products.Intel is expanding AI deployments through collaborations with companies including Google, Dell and Cisco.Intel is advancing its foundry roadmap while higher earnings estimates reflect improving business momentum. Intel Corporation (INTC - Free Report) has gained 480.5% in a year compared with the industry’s growth 39.4%. It has outperformed compared to the Zacks Computer & Technology sector and the S&P 500.
Image Source: Zacks Investment Research
The company has outperformed its peers, Qualcomm Incorporated (QCOM - Free Report) and Advanced Micro Devices (AMD - Free Report) . AMD has gained 290.4%, while Qualcomm has increased 11.8% during this period.
Solid Traction in Expanding AI Ecosystem is Driving GrowthIntel continues to strengthen its position in the emerging AI PC market. It is steadily expanding its portfolio of Core Ultra Series processors, Arc G-Series products and hybrid AI solutions. The company launched the Arc G-Series processors. The leading-edge processors built on Intel Core Ultra Series 3 architecture are designed to deliver higher gaming performance, improved power efficiency and longer battery life. Such innovative launches will likely boost prospects in the growing AI gaming PC market.
The company also introduced Ethernet E835 Controllers and Network Adapters for cloud, enterprise, AI and telecom infrastructure. As enterprises aim to boost network infrastructure to match high bandwidth requirements, Intel is broadening its portfolio offerings to capitalize on the emerging trend. Its strong focus on innovation boosts its competitive edge against other industry leaders such as AMD and Qualcomm.
Intel continues to deepen relationships with leading technology companies across multiple domains such as cloud computing, enterprise infrastructure, telecommunications and consumer electronics manufacturers. Collaborations with partners including Google, Dell Technologies, Nokia, Cisco, Lenovo, Supermicro and MSI are driving adoption of Intel processors.
Recently, TPIsoftware has adopted Intel Xeon 6 processors with Performance Cores and Intel Arc Pro B60 GPUs as the computing foundation for its enterprise-grade sovereign AI solutions. This underscores Intel’s expanding role in secure on-premises generative AI deployments. Intel has also revealed that several industry leaders across industries, including AT&T, Verizon, Samsung and Ericsson, are leveraging Xeon 6 for network transformation and AI acceleration. Growing collaboration with industry leaders and a broadening customer base bode well for sustainable growth.
Steady Foundry Roadmap Execution is a PositiveIntel continues to make steady progress on its IDM (Integrated Device Manufacturing) 2.0 strategy and advanced manufacturing roadmap. Intel 18A entered production phase last year. The latest Intel Foundry update indicates Intel 18A-P entering risk production while maintaining compatibility with Intel 18A. The 18A-P is designed to deliver higher performance, lower power consumption and improved thermal characteristics.
Estimate Revision Trend of INTCEarnings estimates for Intel for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric for IntelFrom a valuation standpoint, Intel appears to be relatively cheaper than the industry and below its mean. Going by the price/book ratio, the company's shares currently trade at 5.11 book value, lower than 25.71 of the industry average.
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End NoteIntel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. Innovative product launches cater to growing AI networking spaces, bodes well for sustainable growth. Demand for XEON 6 processors remains strong. Collaboration with major industry leaders is driving innovation. It is strategically investing to expand its manufacturing capacity to accelerate its IDM 2.0 strategy. This will likely bring long-term benefits. Upward estimate revision shows investors’ growing confidence in the stock’s growth potential. Hence, with a Zacks rank #1 (Strong Buy), Intel appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel ve středu odepsal 9 % a poprvé výrazně narušil příběh obratu pod vedením Lip-Bu Tana. Firma sice dál zlepšuje tržby i marži, ale stále vykazuje miliardové GAAP ztráty a záporný volný cash flow.
Intel (NASDAQ:INTC | INTC Price Prediction) at $127 looks like a wait-and-see. After a year that saw the stock rise from around $22.40 to nearly $140, Wednesday’s 9% single-day drop is the first real crack in the Lip-Bu Tan turnaround narrative.
Intel is trying to become a leading-edge foundry, an AI infrastructure supplier, and a national industrial policy asset all at once. Since Tan took over, the company has strung together six consecutive quarters of revenue above expectations, secured a $5 billion equity investment from NVIDIA (NASDAQ:NVDA), a $2 billion stake from SoftBank, and a U.S. government ownership position that pushed the stock up 278.4% year to date. Then momentum stalled. Since May, the stock has drifted, and this morning it gave back a chunk of gains in one session.
The operating numbers are improving Q1 FY26 non-GAAP EPS came in at $0.29 against a $0.0127 consensus, revenue hit $13.58 billion, up 7.18% year over year, and non-GAAP gross margin expanded to 41.0% from 39.2%. The Data Center and AI segment grew 22% year over year, which matters because that is where NVIDIA’s GPUs need Xeon host CPUs.
Strategic wins keep stacking. Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8 systems, Google signed a multiyear ASIC and Xeon deal, and Intel 18A is in high-volume manufacturing in Arizona. Cantor Fitzgerald raised its price target to $150, and Jim Cramer said Tan has “successfully turned the company around.”
The GAAP story tells a different tale Q1 FY26 posted a $3.73 billion net loss and a $3.14 billion operating loss, weighed down by a $4.07 billion restructuring charge tied largely to Mobileye goodwill impairment. Intel Foundry, the entire point of the leading-edge bet, keeps burning cash, with recent operating losses running $2.51 billion in Q4 2025. Free cash flow was negative $3.87 billion last quarter.
Valuation now assumes everything works. Forward P/E sits at roughly 118x, and Trefis flagged a looming “margin squeeze” from rising input costs and softening PC demand. Reddit sentiment on wallstreetbets has rolled from scores of 77 to 82 in mid-June to 32 to 50 by late June. Composite prediction-market sentiment has fallen 6.37 points over the past week.
Both sides are half right The product cycle is real, DCAI is accelerating, and Intel 18A is shipping. But the foundry has not proven it can attract an anchor external customer, and Intel 14A could be paused or discontinued if that customer never shows. The next real read is Q2 2026 earnings on July 23, 2026, when guidance of $13.8 billion to $14.8 billion in revenue and $0.20 non-GAAP EPS either gets validated or trimmed.
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Insiders are net buyers across 47 recent transactions, which is what you see when management thinks the market is jumpy in the short run.
The analyst picture Intel currently trades at $128.21 against a consensus analyst target of $98.50, which implies roughly 23.19% downside. Cantor’s $150 outlier shows how wide the range has become. Coverage spans 48 analysts, and the distribution leans defensive.
Strong Buy: 2 Buy: 10 Hold: 31 Sell: 2 Strong Sell: 3 INTC is up 456% over the past year, which is something the SPY hasn’t achieved in even 10 years.
Why waiting is the right call At $127, Intel is a Hold. The bull case needs one more clean quarter to reprice higher, and the bear case needs one soft foundry update to send it back toward the analyst consensus in the $90s. Neither is knowable before the July 23 earnings report.
Buying today means paying 118 times forward earnings for a company still posting multibillion-dollar GAAP losses and burning cash on capex. Selling today means calling the top on a name where NVIDIA, SoftBank, and the U.S. government are all aligned owners.
The thesis strengthens if Q2 revenue lands at the high end of guidance, DCAI stays above 20% growth, and Tan names an external 14A customer. It weakens if gross margin slips below 39%, foundry losses widen, or 14A gets shelved. Today’s 9% drop is a warning shot. The cost of waiting three weeks is small compared to the cost of guessing wrong on a stock that has already run more than 500%.
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Nasdaq futures were down 0.54%, while S&P 500 futures slipped 0.31%, weighing on technology stocks ahead of the opening bell.
Intel appeared to be facing profit-taking after a strong rally that pushed the stock close to its 52-week high.
The stock has significantly outperformed the broader market over the past year. That leaves it vulnerable to short-term selling when investor sentiment weakens.
With shares trading well above their major moving averages, traders may also be locking in gains as the market shifts toward a more risk-off tone.
Intel Emerges as a Major AI WinnerCNBC reported that the three companies added roughly $2 trillion in combined market capitalization during the quarter, making them the 10th-, 11th- and 12th-most valuable U.S. technology companies. Intel shares surged 216% during the quarter, adding about $480 billion to the company’s market value.
Analysts See Rotation Into AI InfrastructureBarclays analyst Anshul Gupta told CNBC that investors rotated money out of AI hyperscalers and into companies supplying the hardware needed to build AI infrastructure.
That shift fueled sharp gains across semiconductor stocks as investors looked beyond AI chip leaders to companies positioned to benefit from rising data center investment.
Analysts told CNBC the rally could represent a “changing of the guard in AI,” with investors favoring companies that complement NVIDIA’s ecosystem rather than compete directly with it.
Cramer Says Intel Is His Favorite Tech WinnerCNBC’s Jim Cramer highlighted Intel as one of the standout technology performers of the second quarter, crediting CEO Lip-Bu Tan with transforming the company’s outlook.
Cramer called Intel his favorite stock among the quarter’s biggest technology winners.
He said investors are rewarding companies that produce technology in short supply while large technology customers continue spending aggressively to support AI expansion.
He identified three major growth drivers for Intel: its leadership in CPUs that power AI agents, its higher-margin chip packaging business, and its expanding foundry operations.
Cramer also said Intel could eventually help ease the industry’s memory shortage and described the company as “a national treasure.”
The stock is trading about 13% above its 20-day simple moving average of $121.79 and roughly 132% above its 200-day simple moving average of $59.34. The 20-day average remains above the 50-day average, while the 50-day average is above the 200-day average, a bullish alignment that often supports buy-the-dip activity.
Momentum indicators also remain constructive. The MACD is above its signal line, and the histogram remains positive, suggesting upward momentum continues even as the stock consolidates.
Traders are watching resistance near $141.50. A sustained move above that level could open the door to a test of the 52-week high of $142.35.
Earnings Remain the Next Key CatalystIntel is scheduled to report second-quarter earnings on July 23.
Analysts expect earnings of 19 cents per share, compared with a loss of 10 cents a year earlier. Revenue is projected to rise to $14.40 billion from $12.86 billion in the prior-year period.
Wall Street currently has a consensus Hold rating on the stock with an average price forecast of $88.63.
Recent analyst actions include Cantor Fitzgerald raising its price forecast to $150 while maintaining a Neutral rating on June 29, Goldman Sachs initiating coverage with a Neutral rating and a $150 price forecast on June 25, and Bank of America Securities raising its price forecast to $160 while reiterating a Buy rating on June 23.
Top ETF ExposureINTC Stock Price Activity: Intel shares were down 1.57% at $137.44 during premarket trading on Wednesday, according to Benzinga Pro data.
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Intel je podle článku jediný z trojice HP, Intel a Xerox s reálným růstem: tržby vzrostly o 7,2 % na 13,577 miliardy USD a segment Data Center and AI vyskočil o 22 %.
Although HP (NYSE: HPQ | HPQ Price Prediction), Intel (NASDAQ: INTC), and Xerox (NASDAQ: XRX) each defined an entire category of American hardware, Wall Street no longer prices them as peers. One ticker has vaulted, one has drifted, and one is fighting for survival at a sub-$500 million market cap. The more useful frame is the IBM template: when a legacy hardware franchise pivots, survivors carry a real product-cycle catalyst, sufficient balance sheet runway, and operating leverage. Lou Gerstner’s 1990s mainframe-to-services rebuild is the yardstick, and only one of these three currently clears it.
Start with the scoreboard. Intel has climbed 470.3% over the past year and 283.7% since June 2023, closing at $128.32 on June 26. HP slipped 7.4% over the past year and 22.7% across three years, ending the same session at $22.88. Xerox has lost 38.3% over the past 12 months and 76.7% across three, finishing at $3.31. The Gerstner question is which move rests on a rebuild and which is noise.
HP: Managed Decline With a Cash Sleeve HP’s most recent quarter looks clean on the surface. Q2 FY26 revenue of $14.408 billion rose 8.99% year over year and beat consensus by 2.4%, while non-GAAP EPS of $0.86 beat the $0.72 estimate by 20.26%. Personal Systems surged 13%, Commercial PS jumped 14%, and free cash flow swung to $800 million from negative $100 million a year earlier. Management narrowed the full-year non-GAAP EPS band to $2.90 to $3.10.
However, the core franchise still carries mature-market scars. Printing was flat, Consumer Printing dropped 10%, total PC units fell 7%, and stockholders’ equity remained negative at –$144 million. A restructuring program targets roughly $1 billion in run-rate savings by FY2028 with 4,000 to 6,000 job cuts, while $100 million in buybacks and a $0.30 quarterly dividend return cash to shareholders. The thesis is cost discipline and capital return. That profile matches managed decline rather than Gerstner-grade reinvention.
Intel: High-Stakes Reinvention Intel’s Q1 FY26 earnings report is the closest match to the survivor profile in this group. Revenue of $13.577 billion grew 7.2% and beat by 9.22%, while non-GAAP EPS of $0.29 crushed the $0.0127 consensus estimate. Data Center and AI revenue vaulted 22% to $5.052 billion, and Intel Foundry grew 16% to $5.421 billion, now roughly 40% of total revenue. Non-GAAP gross margin expanded to 41.0% from 39.2%, marking the sixth consecutive quarter above revenue expectations.
The catalyst stack is tangible. A multiyear Google partnership covers Xeon and custom ASIC IPUs, Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8, and a Terafab project lines up SpaceX, xAI, and Tesla. A $5.0 billion NVIDIA equity investment and a U.S. government equity stake backstop the runway, while cash of $17.247 billion, up 92.77% year over year, funds the foundry buildout. CEO Lip-Bu Tan put it bluntly: “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.” The tradeoffs are meaningful: a $4.07 billion Mobileye-related charge drove a $3.73 billion GAAP net loss, foundry remains unprofitable, and capex stays heavy. The profile matches genuine reinvention rather than a capex-cycle trade.
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Xerox: Racing the Clock Xerox is running the abandon-the-old-battlefield script. The Lexmark deal and the ITsavvy and Powerland tuck-ins push the company toward IT and managed services. The balance sheet is the catch. Total liabilities stand at $9.37 billion against just $305 million of shareholders’ equity. Q1 2026 revenue of $1.846 billion rose 26.7% on acquisitions, but pro forma revenue declined 3.7%, and equipment gross margin collapsed to 10.8% from 27.9%, and adjusted EPS of negative $0.43 missed by 56.36%. Free cash flow ran to negative $165 million, and non-financing interest expense surged to $84 million from $33 million on acquisition debt.
CEO Louie Pastor told investors, “We are closer to an inflection point than the external narrative suggests.” The market disagrees. The analyst consensus price target is $2.75, with bearish sentiment, while trailing EPS stands at –$8.34, book value at $2.286, and the forward multiple at 3x. That is a credit-distress profile. The strategy fits the Gerstner playbook on paper. The capacity to execute it fits the Kodak playbook on the filings.
The Ranked Verdict Measured against the IBM survivor template (product-cycle catalyst, balance sheet capacity, operating leverage), the order is unambiguous.
Intel. The only profile here with a genuine AI tailwind, $17.247 billion in cash, NVIDIA and Google ecosystem validation, and margin expansion alongside a structural mix shift into foundry. HP. A disciplined operator with an FCF inflection and steady capital return, but no reinvention engine to anchor the next decade. Xerox. A textbook pivot attempted from a Kodak-shaped balance sheet. Direction is correct, runway is short. Long term, Wall Street keeps rewarding platform reinvention over hardware nostalgia. The decade-long tape says the same: Intel up 291.8% over a decade, HP up 86.6%, and Xerox down 86.7%. Same battlefield, three very different futures.
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Intel (INTC 3.20%) was once at the top of the semiconductor industry. But after arriving late to the AI boom, losing its technological edge to rivals like Advanced Micro Devices and Taiwan Semiconductor Manufacturing, and stumbling out of the gate in the competitive foundry business, its dominance turned into a sobering lesson in how quickly even the best chip companies can fall.
Image source: Getty Images.
Lately, though, a string of wins suggests Intel's AI bet is finally starting to pay off, raising a fair question: Is it time to reconsider this stock? The fact is, revenue is improving, foundry partnerships are stacking up, and investor confidence is clearly back.
Still, headlines don't tell the whole story. To see whether Intel's momentum is real, investors need to look at where the company actually stands in AI and what's driving this move.
From $40 to $130 in half a year? How? Intel's stock price action has been hard to ignore. Shares are up more than 230% year to date and 484% over the last 52 weeks, and the stock recently pushed through $140 to a new all-time high.
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That kind of rally doesn't happen for just one reason. Intel's cost-cutting is starting to show up in the numbers, and its renewed focus on AI is catching investors' attention.
But the biggest contributors have been partnerships with major AI players. In April, Intel announced a deeper collaboration with Alphabet to expand the use of its Xeon CPUs and custom IPUs for AI workloads.
Around the same time, Intel joined the Terafab project as a strategic partner alongside Space Exploration Technologies and Tesla, contributing design, fabrication, and advanced packaging capabilities. Intel is set to serve as a key manufacturing partner.
Is it ambitious, like perhaps one of Elon Musk's projects? Absolutely. But SpaceX and Tesla are willing to spend real money to try, and that's exactly the kind of business and validation Intel has lacked in recent years.
That brings us to the biggest catalyst behind the stock's move: the foundry business.
Foundry generated $5.4 billion in revenue in Q1 For years, Intel Foundry was viewed as a giant money pit.
Intel poured tens of billions into advanced manufacturing capacity, process technology, and fab expansions, while the segment reported multibillion-dollar operating losses. Investors were asked to be patient, even as the losses kept piling up.
Now, the narrative is shifting.
As mentioned earlier, Foundry's latest quarterly revenue is becoming a meaningful part of the business. It suggests Intel no longer has to rely solely on selling its own processors. It can also manufacture chips for other companies. And with the AI boom still in full swing, hyperscalers are spending billions to secure leading-edge silicon. That gives Intel a chance to capture a piece of a market it entered late.
Operating losses are also in the billions To be clear, Foundry is still unprofitable. In the first quarter of FY 2026, the segment reported an operating loss of about $2.44 billion , with Intel remaining in the red on a GAAP basis. Net loss also ballooned more than 350% year over year.
Nobody expected Foundry to flip to profitability overnight, though. The more important point is that revenue is moving in the right direction. Partnerships with hyperscalers and AI leaders add credibility, which could translate into a real advantage in contract manufacturing.
If Intel keeps executing on its roadmap, improves yields, and wins a few more high-profile clients, its original Foundry vision could eventually materialize.
Is Intel a buy today? Intel stock currently carries a buy rating from Wall Street. Still, more analysts are leaning toward a hold as the stock approaches its price target, and that hesitation makes sense.
It's one thing to reinforce the story with partnerships and improve revenue. It's another to turn that good news into steady, durable profits. Investors will need more validation. But at this point, it does look fair to say Intel's foundry bet is no longer just a costly experiment. It's a legitimate path to future growth, and a big reason some investors are taking a fresh look at the stock.
Intel vykázal tržby 13,577 miliardy USD, meziročně o 7,2 % více, a datová centra a AI vzrostly o 22 % na 5,052 miliardy USD. Qualcomm měl tržby 10,599 miliardy USD, o 3,46 % méně, ale automobilový segment vyskočil o 38 % na rekordní úroveň 1,326 miliardy USD.
Intel (NASDAQ: INTC | INTC Price Prediction) and Qualcomm (NASDAQ: QCOM) both just delivered earnings that tell very different stories about how to win in AI silicon. Intel posted a sixth straight revenue beat while absorbing a $4.07 billion Mobileye charge. Qualcomm landed its fourth consecutive EPS beat with handset weakness offset by record auto.
Foundry Momentum Carries Intel. Cars Carry Qualcomm. Intel’s Q1 FY2026 earnings report showed $13.577 billion in revenue, up 7.2% year over year, with Data Center and AI climbing 22% to $5.052 billion and Intel Foundry up 16%.
CEO Lip-Bu Tan framed the moment plainly: “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.” Non-GAAP gross margin expanded to 41%, a real signal that the 18A ramp is paying off.
Qualcomm’s quarter looked steadier and stranger. Revenue of $10.599 billion slipped 3.46% year over year. Handsets fell 13% to $6.024 billion on memory constraints and weak Chinese OEM demand.
Automotive ripped 38% higher to a record $1.326 billion, and IoT added 9%. Cristiano Amon told investors Qualcomm is now “in a period of profound industry transformation” tied to AI agents.
One Rebuilds Manufacturing. One Buys Back Stock. The strategic split is the whole story. Intel is pouring capital into wafers, with $4.963 billion in Q1 capex, an Ireland fab buyback, and a fresh Penang expansion.
Qualcomm is doing the opposite, returning cash aggressively. Management authorized a $20 billion repurchase and bought back $2.8 billion in shares last quarter alone.
Lens Intel Qualcomm Core Bet U.S. foundry plus Xeon for AI hosts Snapdragon expansion into auto and data center Marquee Win Xeon 6 selected for NVIDIA DGX Rubin NVL8 Hyperscaler custom silicon shipping in 2026 Key Vulnerability GAAP losses, capex risk if 14A demand slips Handset concentration, Apple vertical integration Intel’s forward P/E of 154 reflects an earnings recovery the market is willing to underwrite. Qualcomm trades at a far more grounded 24 trailing P/E with a 1.67% yield. Two different risk profiles, same end market.
The Next Test Is Whether Diversification Sticks I will be watching Intel’s Q2 guide of $13.8 billion to $14.8 billion and whether 18A yields hold as volume scales. The Google ASIC partnership and the reported Apple production tie-up could reshape the foundry narrative if either delivers signed wafer commitments.
For Qualcomm, the June 24 Investor Day is the catalyst. The key items to watch are hard data center revenue targets and any color on the Alphawave integration. The Chinese handset trough is expected to bottom in Q3 and recover in Q4, so any slip there changes the math fast.
Why I Lean Toward Qualcomm If I Had to Choose Today Intel’s chart has been remarkable. The stock is up 263.12% year to date and 100.64% since the April earnings release. That run already prices in a lot of foundry success that has yet to show up in GAAP profit.
For me, Qualcomm’s mix of record auto growth, a real dividend, and a credible data center entry feels easier to underwrite. Intel offers turnaround torque for investors who can tolerate restructuring noise, while one more clean quarter would further validate the thesis.
Akcie Intelu vyskočily o 10,64 % po zprávě, že Apple s ním má v USA navrhovat a vyrábět čipy. Bernstein to označil za sázku na úspěch foundry businessu.
Intel (NASDAQ:INTC | INTC Price Prediction) ripped higher last week after former President Donald Trump posted on Truth Social that Apple (NASDAQ:AAPL) had agreed to design and manufacture chips with Intel inside the United States. Intel closed up 10.64% at $133.99, with INTC stock now above $140. Bernstein’s Stacy Rasgon, on CNBC, framed the move bluntly. “Intel at these prices, I mean, you’re betting on foundry success.”
What the rumored Apple deal actually is Neither company has confirmed anything. No official statements from Apple or Intel had been issued as of Thursday afternoon, and Wedbush analysts cautioned that Apple’s involvement would likely focus on mature or lower-end silicon rather than its flagship processors. So when Rasgon says the rumored part is probably a low-margin PC chip, that lines up. The dollars at stake on day one are small.
“The first step is always the hardest. And if it actually does happen, at least it’s the first step.” Apple has been a TSMC customer for years. Pulling any wafer volume back to Arizona is symbolic capital that compounds. Dan Ives of Wedbush agreed, telling viewers “This is the right time to now really double down on a potential partnership.”
Why foundry is the entire thesis CEO Lip-Bu Tan has spent a year telling investors the foundry business is the future of Intel, and the numbers have started to cooperate. Q1 FY2026 Intel Foundry revenue came in at $5.421 billion, up 16% year over year, an acceleration from +4% in Q4 2025 and -2% in Q3 2025. Tan attributed the jump to “unprecedented demand for silicon and advanced packaging.” You can read the full release on Intel’s Q1 8-K filed with the SEC.
The losses are still real. Foundry operating losses ran $3.2 billion in Q2 2025, $2.3 billion in Q3 2025, and $2.51 billion in Q4 2025. Tan needs external customers to fill the new Arizona fabs or the depreciation math never works. He has been picking them up. NVIDIA (NASDAQ:NVDA) put $5 billion into Intel common stock last year, SoftBank added $2.0 billion, and Intel joined the Terafab project alongside SpaceX, xAI, and Tesla. The U.S. government took roughly a 10% stake and disbursed $5.7 billion in CHIPS Act funding in Q3 2025 alone. Apple would be the consumer-brand stamp the roster has been missing.
The valuation is doing real work here Intel’s market cap sits near $588 billion, with a forward P/E around 147x and trailing EPS still negative at -$0.60. The stock is up 563% over the past year and 257% year to date from a starting price of $36.90.
The consensus analyst target is $93.12, which sits well below where the stock trades today. So either the sell side is too slow or the market is paying a serious premium for foundry optionality. Bank of America’s Vivek Arya jumped sides on June 11, double-upgrading Intel to Buy with a $135 price target and modeling foundry revenue surpassing $45 billion by 2030.
What Apple gets, and what to watch For Apple, the calculus is supply diversification. Tim Cook just warned that product price increases are “unavoidable” because AI demand is bidding up memory and storage costs, with TechInsights estimating an extra $270 in cost on the next iPhone Pro. A second U.S.-based source on mature nodes is cheap insurance. Apple shares barely moved, up 0.7% to $298.01, which is the right reaction for a $4 trillion company taking a small hedge.
The investor question now is whether Intel and Apple confirm the arrangement, and at what node. Intel 18A is already in high-volume manufacturing in Arizona, and the 18A-P process recently entered risk production. If the first Apple parts run on those lines, Rasgon’s first step turns into a credible second one. If the announcement stays a Truth Social post, the foundry premium baked into Intel’s stock gets a lot harder to defend.
Intel spustil zkušební výrobu svého procesu 18A-P, který má zlepšit výkon o 9 % nebo snížit spotřebu o 18 % oproti 18A. Firma tím chce znovu získat půdu v serverových CPU proti AMD.
Intel (INTC 1.39%) has been losing ground to Advanced Micro Devices (AMD 1.77%) in the server central processing unit (CPU) market, primarily due to the superior performance and lower costs of the latter's Epyc server CPUs.
In fact, AMD seems better-positioned to capitalize on the growth of the server CPU market right now. After all, AMD is gaining share at a nice clip in server CPUs, a market that has received a nice shot in the arm thanks to the growing demand for AI inference workloads. Intel, however, is preparing to fight back against AMD, as evident from its latest move.
Image source: Intel.
Intel is looking to close the technology gap with AMD Intel recently announced that its advanced 18A-P process node is now in risk production. This is the stage during which chips are produced in low volumes to gather data on whether they will meet customer requirements, what their defect rate is, and whether they deliver the claimed performance and efficiency gains.
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It is worth noting that Intel 18A-P is a refined version of the company's 18A process node. The company is promising a 9% improvement in performance compared to the 18A at identical power consumption. Meanwhile, the 18A-P node uses 18% less power while operating at the same performance level as the 18A. Even better, Intel points out that the refined process node is 20% to 40% more thermal resistant, suggesting that it will cost less to cool.
The risk production phase is ideally followed by volume production within the next 12 to 24 months, as noted by Tom's Hardware. However, as this is the refined version of an existing node, it is likely to take less time to get to that point. Intel has started volume production of client and server chips based on the 18A process already and noted on the April earnings call that this is the "fastest new product ramp in five years."
Importantly, the Xeon 6 server processor, manufactured using Intel 18A, is gaining traction among server CPUs. Nvidia has selected it for its Rubin rack-scale servers. Moreover, Intel points out that demand for its Xeon server CPUs exceeds supply, suggesting that the company's most advanced process node could allow it to arrest the market share slide it has been experiencing in the CPU market.
Of course, it remains to be seen how Intel 18A-P fares in the risk production phase. However, since the company has already brought the 18A into volume production, there is a good chance the 18A-P will make the cut and enter volume production as well. This could give Intel a much-needed boost against AMD.
Why the 18A-P process could be an important one for Intel Intel's share of the server CPU market slid by six percentage points year over year to 66.8% in the first quarter of 2026, according to Mercury Research. The chip giant's share of consumer CPUs, meanwhile, dropped by 5.5 percentage points to 70.4%. AMD accounted for the rest of the market.
What's more, AMD's revenue share of these markets is higher than its unit share, suggesting that it enjoys stronger pricing power. If Intel manages to deliver the performance gains it claims and helps lower costs for users by reducing cooling requirements, it can indeed stop AMD from clawing away more market share.
An important point worth noting is that Intel's data center and AI (DCAI) products and the foundry business are already showing promising signs of growth. The company's DCAI revenue increased by 22% year over year in Q1 to $5.1 billion, while the foundry business recorded 16% growth to $5.4 billion. The mass production of the 18A-P node could give both these businesses a shot in the arm.
While Intel will be able to produce more powerful and power-efficient chips thanks to a more advanced node, it is believed that the 18A-P could help it land Apple as a foundry customer. Given that the DCAI and foundry segments produced a combined $10.1 billion revenue out of Intel's overall revenue of $13.6 billion in Q1, they can move the needle in a bigger way for the company, thanks to its product development moves.
As a result, don't be surprised to see Intel's revenue growth exceeding analysts' expectations of around 10% growth going forward.
Data by YCharts
That's why it may be a good idea for investors to continue holding this AI stock, as the advancements it is making on the product side could help it deliver stronger-than-expected growth, which may translate into more stock price upside.
Jim Cramer označil Intel za svůj nejlepší AI čipový titul, i když akcie letos už vzrostly o 263 %. Opírá se o rostoucí roli CPU v agentické AI a zlepšení foundry segmentu.
Jim Cramer, the longtime host of CNBC's Mad Money, recently named Intel (INTC 1.39%) his top artificial intelligence (AI) chip stock. This was a pretty bold move considering that the stock has already rallied by 263% so far this year.
Indeed, Cramer commands one of the more durable audiences in retail investing. His rapid-fire delivery and unfiltered opinions have resulted in countless soundbites featuring actionable investment ideas amid market noise. With that said, his visibility can be polarizing, and detractors often label his calls hyperbolic -- noting the many instances where his enthusiasm has outpaced important nuance or his timing has proven inaccurate.
Nevertheless, his Intel bull thesis centers on two underappreciated dynamics: the company's CPU heritage as the artificial intelligence revolution heads towards its agentic AI era, and the tangible signs that its chip foundry operation is stabilizing. These points deserve scrutiny rather than a simple echo of pundit commentary. Let's dig in to see if Cramer is right.
Image source: The Motley Fool.
Move over, GPUs -- CPUs are making a comeback When given a specific objective to accomplish, agentic AI systems can plan out a set of steps, gather data, and follow through with multistep actions to complete it with minimal human oversight. These software models are changing the nature of the accelerated computing equation, moving it beyond its prior focus on parallel processing power. When it comes to training generative models and basic inference deployments, the complex matrix operations involved need to be handled by GPUs or other types of parallel processing chips. But when users are deploying fleets of autonomous agents, that introduces orchestration layers that CPUs handle more efficiently.
During the earlier stages of the AI revolution, hyperscalers could sequence their chip purchases: first securing massive GPU clusters from Nvidia, and then retrofitting their servers or expanding CPU capacity later as their utilization needs became clearer. This tactic worked when AI workloads were dominated by generic training jobs or simple inference serving.
However, the rise in agentic workloads is inverting the old logic. GPU servers already connect each accelerator with a host CPU to manage traffic, memory coherency, and virtualization. The growth of agentic deployments exponentially multiplies the volume of CPUs required. Because each agent instance can create its own dynamic sub-tasks by querying external APIs and maintaining persistent context, the CPU architectures to support the whole system must now be procured and installed earlier in the process.
Intel's long history in server CPU production positions it to capture incremental socket demand that pure-play GPU designers will struggle to meet. The result is not a zero-sum displacement of GPUs, but a multiplier effect whereby each new tranche of AI accelerators sold results in orders for the CPUs that will make those clusters usable at scale.
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Intel's foundry recovery has been gradual, but respectable Throughout most of the AI revolution, Intel struggled with advanced-node chip manufacturing. Recent capital investments from both Nvidia and the U.S. government, as well as the hiring of Lip-Bu Tan as CEO last year, have helped the company make rapid improvements in the foundry operation.
During the first quarter, Intel's foundry business generated $5.4 billion in revenue -- an increase of 16% year over year. While this may look impressive on the surface, external foundry revenue -- sales that are not attributed to Intel's own products -- was only $174 million. Meanwhile, the foundry unit is still operating at a hefty loss.
Nevertheless, I think that a credible turnaround of Intel's foundry operation actually matters less for its own chips than for the broader AI infrastructure ecosystem. What I mean by that is that the chip sector's concentrated reliance on a single offshore manufacturer (Taiwan Semiconductor Manufacturing) introduces a number of potential points of failure -- geopolitical, logistical, or capacity-related.
Sophisticated buyers are going to increasingly price these factors into their capex plans. Against this backdrop, Intel's ability to secure more external customers for its leading-edge process nodes would validate its recovery and help it diversify its revenue sources away from its legacy integrated devices. While its external foundry business is still small, it has grown nearly sixfold year over year. I'm cautiously optimistic the company can capitalize on the demand tailwinds going forward.
Is Intel stock still a buy? Intel stock's massive upward moves this year have already priced in considerable optimism about AI tailwinds. To achieve sustained share-price appreciation from here will require Intel to convert the CPU demand thesis into measurable design wins and achieve foundry milestones without the multiyear delays that have previously plagued it.
Furthermore, it's important to realize that we are early in the agentic AI era. The infrastructure build-out required to support mass adoption of these applications will likely unfold more gradually than many pundits have predicted. Ultimately, this will give Intel's competitors in the chip design space some time to respond.
Nevertheless, the combination of the resurgent relevance of CPUs and Intel's recent validation as a third-party foundry gives it a degree of optionality that GPU-centric companies lack. Investors evaluating Intel are effectively betting that the next phase of the data center infrastructure build-out will reward balance across the AI chip stack over specialized products.
While Cramer's endorsement amplifies Intel's visibility, the underlying buy case should rest on more observable shifts in AI workload composition and supply chain choices. Whether this translates into durable earnings growth will depend on management's execution, which is never guaranteed. With that said, the directional logic of paired CPU-GPU demand and chip designers' desire to reduce the reliance on overseas foundry partners is enough to at least justify paying close attention to Intel's fundamentals rather than dismissing Cramer's commentary as mere market theater.
Intel vyčlenil pokročilé balení čipů do samostatné divize a jmenoval do jejího čela Seok-Hee Leeho. Firma zároveň rozjíždí proces 18A-P v režimu risk production.
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52-Week Range$18.97▼
$141.45Price Target$87.98
Intel Corporation NASDAQ: INTC has orchestrated a historic market reversal over the past six months, surging 281.8% year to date to trade near $141 per share. Investors evaluating this massive valuation expansion must look past legacy personal computer processor sales. The current momentum stems entirely from a highly subsidized, state-backed transition into a sovereign foundry powerhouse capable of rivaling Taiwan Semiconductor Manufacturing Company NYSE: TSM.
By securing unprecedented government backing and aggressively poaching top-tier manufacturing talent, Intel Corporation is systematically dismantling the primary barriers to domestic silicon fabrication. The thesis driving capital into Intel Corporation centers on a specific, highly lucrative bottleneck in the artificial intelligence (AI) hardware supply chain: advanced packaging.
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Stacking the Deck Against Overseas FoundriesModern artificial intelligence accelerators are no longer monolithic silicon chips. They rely on complex architectural designs that stack high-bandwidth memory directly alongside logic dies. This intricate physical assembly requires specialized back-end packaging technologies.
Currently, the broader semiconductor sector is constrained by the physical capacity limits of existing packaging lines. Taiwan Semiconductor Manufacturing Company operates the dominant advanced packaging platform, but surging order volumes from hyperscalers have left those facilities severely oversubscribed. Major fabless designers are now scrambling for alternatives.
Recognizing this structural industry shortfall, management at Intel Corporation executed a decisive leadership overhaul on June 18, 2026, carving out advanced packaging into an independent, hyper-focused business division.
To lead this critical unit, the board appointed Seok-Hee Lee as Executive Vice President. Lee brings invaluable operational experience from his tenure as chief executive officer of SK hynix, the exact memory giant that pioneered high-bandwidth memory integration. Placing a seasoned memory and packaging veteran directly in charge of commercializing proprietary technologies like Embedded Multi-die Interconnect Bridge-T and High-Density Hybrid Bonding signals a sharp operational pivot. The industry is recognizing that back-end packaging is just as critical to computing performance as shrinking transistor sizes.
Analysts are taking note of the revenue potential independent of traditional front-end wafer fabrication. Mizuho Securities recently raised its price target for Intel Corporation to $135, citing the potential for these distinct back-end packaging platforms to capture 10% to 15% of the total addressable market over the long term. Bank of America followed with an even more aggressive move, raising its price target on Intel Corporation to $160 from $135, marking its second target increase this month. While Mizuho’s upgraded target still trails Intel Corporation’s recent share price, Bank of America’s higher target suggests that parts of Wall Street still see upside despite the stock’s massive rally.
Apple and NVIDIA Validate the 18A-P NodeTo operate successfully as a contract foundry, a facility must demonstrate high, defect-free yields at volume. The clearest signal of yield viability comes from the capital commitments of industry leaders. The physical foundation for this validation was presented at the Honolulu VLSI Symposium earlier this month, where engineers from Intel Corporation confirmed that the enhanced 18A-P manufacturing process had officially entered risk production. This specific node delivers a 9% performance increase at equal power, an 18% power reduction at equal performance, and a 20% to 40% reduction in thermal resistance compared to standard 18A iterations.
Those thermal efficiencies perfectly position the 18A-P node for mobile and consumer computing applications. Days after the symposium, reports surfaced detailing a preliminary agreement with Apple Inc. NASDAQ: AAPL to shift production of mature M-series processors and iPad chips to domestic fabrication lines utilizing the 18A-P process. While volume production is not expected to scale until mid-2027, securing the world's most demanding supply chain operator serves as the ultimate commercial validation for the new domestic nodes.
This consumer-level agreement pairs seamlessly with heavier data center initiatives. In December 2025, NVIDIA Corporation NASDAQ: NVDA finalized a $5 billion strategic equity investment in Intel Corporation, taking a roughly 4% stake at $23.28 per share. The two entities are co-developing multiple generations of custom x86 processors featuring high-speed interconnect integration. Embedding domestic manufacturing directly into the core of the leading artificial intelligence hardware ecosystem effectively creates an industry-wide backstop for Intel Corporation's survival.
Weighing Sovereign Backing Against RealityThe geopolitical necessity of a domestic semiconductor supply chain provides a unique floor for Intel Corporation. Brokered in August 2025, the U.S. government established a direct 10% equity stake via an initial $10 billion investment package. As Intel Corporation's market capitalization recently crossed $708 billion, its sovereign position has appreciated to more than $70 billion. Aligning national security interests directly with the foundry's financial viability mitigates the extreme downside risks that typically accompany a turnaround story of this magnitude.
Investors must square this immense structural optimism with harsh financial realities. Contract manufacturing is a highly capital-intensive business in which utilization rates determine profitability. If fabrication plants do not run at near-maximum capacity, depreciation costs rapidly erode margins.
Overall MarketRank™68th Percentile
Analyst RatingHold
Upside/Downside33.5% Downside
Short Interest LevelHealthy
Dividend StrengthN/A
News Sentiment0.97 Insider TradingSelling Shares
Proj. Earnings Growth53.97%
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Intel Corporation currently trades at a stretched forward price-to-earnings ratio of 223x. The foundry division continues to post massive operating deficits, absorbing a $2.4 billion loss in the first quarter of 2026 alone. Heavy capital expenditures required to equip the localized Arizona facilities will guarantee continued margin compression for at least the next four to six quarters.
Comparing Intel Corporation to its primary overseas rival highlights the premium investors are currently paying. Taiwan Semiconductor Manufacturing Company maintains a trailing price-to-earnings ratio of nearly 38x while already controlling 70% of the contract manufacturing market. Intel Corporation is currently pricing in years of flawless execution, creating a significant execution gap between today's capital outlays and mid-2027 revenue realization.
Despite the staggering multiples, institutional capital continues to flow toward the domestic production narrative. The institutional consensus reflects a firm belief that the shift in capital expenditure back toward domestic fabrication will generate cash flows large enough to justify the current premium valuation. Short interest remains remarkably low at just 2.69% of the public float, indicating a distinct lack of bearish conviction against the sovereign-backed rally.
Silicon Supercycle: Constructing a Position in American SiliconThe fundamental transition of Intel Corporation from a legacy designer to an essential contract manufacturer is fraught with capital-intensive hurdles. The aggressive restructuring of the advanced packaging division under proven leadership indicates that management correctly identifies where the actual value lies in the modern chip cycle.
Those looking to allocate capital in the semiconductor space may want to monitor the timeline for the 18A-P node as it moves from risk production to commercial scaling. Investors comfortable with near-term margin compression and elevated volatility might view pullbacks as an opportunity to gain exposure to the only viable onshore alternative to overseas fabrication. Cautious market participants may prefer to wait for the foundry division of Intel Corporation to string together two consecutive quarters of narrowing operating losses before establishing a full position.
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Bank of America zvýšila výhled pro Intel, Arm a Micron, protože poptávka spojená s AI infrastrukturou má podle ní vydržet nejméně do roku 2028. Odhad trhu s vybavením pro výrobu čipů zvedla na 190 miliard USD v roce 2027 a 250 miliard USD v roce 2028.
Bank of America raised its outlook for several semiconductor companies, including Intel INTC , Arm Holdings ARM and Micron Technology MU , after concluding that demand tied to artificial intelligence infrastructure may remain visible through at least 2028.
The firm increased its projections for global wafer fabrication equipment spending, which covers tools used to manufacture semiconductors. Bank of America now forecasts the market will reach $190 billion in 2027 and expand to $250 billion in 2028, reflecting a stronger trajectory than previously expected.
According to Bank of America, the revised outlook is supported by additional cleanroom capacity coming online, longer-duration agreements in the memory market and ongoing technology transitions that could increase equipment requirements for chip production. The firm also pointed to operational and capacity developments at Intel and Samsung as factors that may support advanced manufacturing activity in coming years.
Separately, Bank of America lifted its estimate for the semiconductor industry's total addressable market to $2.7 trillion, up from a prior forecast of $2.3 trillion. The brokerage said memory products and data-center infrastructure are expected to account for much of that expansion, while automotive and industrial end markets could provide an additional source of growth as those segments continue to recover.
