Intel delivered a robust second-quarter performance, surpassing Wall Street expectations with a non-GAAP earnings per share of 42 cents—double the 21 cents analysts had projected—and revenue of $16.1 billion, exceeding the consensus estimate of $14.42 billion. The semiconductor company’s stock gained approximately 4% in after-hours trading following the results, contributing to a 172% year-to-date surge in 2026, fueled by heightened demand for its processors amid the artificial intelligence boom. Under CEO Lip-Bu Tan’s leadership since March 2025, Intel has intensified efforts to expand its foundry business, aiming to secure partnerships through advanced fabrication capabilities. The firm also reaffirmed its commitment to advancing production of its 14A and 18A process nodes, with 18A output reportedly 25% above target, reflecting accelerated progress.
Analysts remain divided on Intel’s trajectory. Wells Fargo’s Aaron Rakers maintained an equal-weight rating, citing early-stage execution on process nodes and external foundry acquisitions, alongside uncertainties around gross margin recovery and intensified competition from AMD and Arm-based processors. Rakers increased his price target to $120, implying 17% upside.
Goldman Sachs adopted a neutral stance, with a $150 price target (46% above Thursday’s close), citing Intel’s strong server processor demand driven by agentic AI, advanced packaging momentum, and potential foundry opportunities. However, they noted that peers like AMD and NVIDIA offer superior revenue visibility and risk-reward profiles.
JPMorgan remained underweight, raising its price target to $85 from $45 but maintaining skepticism due to elevated capital expenditures and pending external foundry validation. Bank of America reiterated a buy rating and $160 price target (60% upside), emphasizing Intel’s U.S.-based manufacturing capabilities and strong data center growth, including a 59% year-over-year sales surge. Bernstein adopted a market-perform rating with a $110 target, acknowledging improving sentiment while flagging valuation concerns and potential capital-raising risks.
The contrasting analyst outlooks underscore the challenges and opportunities facing Intel as it navigates a strategic turnaround while competing in an evolving semiconductor landscape.
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