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Intel reported a huge earnings beat. Analysts are on the fence regarding the chipmaker 59%
By Liz Napolitano0%
7/24/2026, 12:54:49 PM
Keywords: Intel, Earnings, Analysts, Stock, Semiconductor, Foundry, Artificial Intelligence, Amd, Nvidia, Goldman Sachs, Jpmorgan, Bank Of America, Bernstein
BS Summary: This article contains 11 faulty reasoning types, including Optimism Bias, Loss Aversion, and Appeal to Authority, with Confirmation Bias as the most egregious example at 26.2% saturation with 223 hits. Analysis detected 844 faulty-reasoning hits from 851 analyzed words, generating a BS Score of 55.6% and a BS Rank of 59% (8,729 of 21,187 articles). This article is worse (more manipulative) than 58.80% of the article peer group.
Analysts have largely had a muted reaction to Intel's blockbuster second-quarter results, with most investment banks on Wall Street holding their current ratings on the stock.
The semiconductor maker earned 42 cents per share on a non-GAAP basis in the second quarter, double the 21 cents per share expected by analysts polled by LSEG.
Revenue totaled $16.1 billion, up 25% year-over-year and above the Street's $14.42 billion consensus estimate.
In reaction, the chipmaker rose roughly 4% in after-hours trading.
The stock was last up roughly 3% in pfe-market trading Friday.
Shares of the hardware firm have soared 172% in 2026 as Intel has turned around its fortunes.
Demand for its central processing units has grown due to the artificial intelligence boom.
Under CEO Lip-Bu Tan since March 2025, Intel has also taken steps to grow its foundry business, with the aim of winning over more clients who want to use its advanced semiconductor fabrication and packaging facilities.
INTC YTD mountain Shares are up 172% in 2026 On Thursday, Intel also reaffirmed its commitment to push ahead with production of its 14a and 18a nodes — an important part of its corporate strategy.
The firm noted that its 18A output is roughly 25% above target, up more than 50% on a quarter-over-quarter basis.
"We maintain our [equal weight] rating at current [share price] levels, given: (1) Progress is encouraging but still early to make a definitive call on execution to process node leadership & external Foundry customer acquisition, (2) Uncertainty regarding Intel's [gross margin] recovery path — sustainable 50%+ gross margin a focus, and (3) increased competition (AMD, but also Arm-based CPUs)," Wells Fargo analyst Aaron Rakers said post-market in a note to clients.
Rakers lifted his price target on Intel by 9%, to $120 from $110, implying 17% upside from Thursday's close.
Here's what other analysts are saying about Intel.
Goldman Sachs: neutral, $150
Analyst James Schneider has a $150 price target on Intel.
That is 46% above Thursday's close.
"We believe investors were constructively positioned heading into the quarter, driven by near-term strength in Server [central processing units], sustained momentum in advanced packaging and signs of progress on its advanced foundry nodes — and we think the company's results and commentary cleared this elevated bar.
We expect Intel to be a beneficiary of rising server demand (driven by agentic AI), and we see upside optionality from Intel's role as a U.S. champion with its foundry business — with near-term traction in advanced packaging, and longer-term potential in wafer outsourcing.
However, we are Neutral rated on the stock as Intel's closest peers (i.e.
AMD, NVDA and AVGO) offer relatively more revenue visibility and favorable risk/reward in our view."
JPMorgan: underweight, $85
Analyst Harlan Sur's new price target of $85, up from $45, is roughly 17% below where Intel closed Thursday.
"Capex [is] inflecting higher, supply [is] still short … but external foundry proof [is] still pending…Net, we raise forward estimates and establish a Dec-27 price target of $85 (versus our prior Dec-26 target of $45) ... [but] given that fair value still sits 15% below where the stock currently trades, we remain [underweight]."
Bank of America: buy, $160
Analyst Vivek Arya has a $160 price target on Intel, suggesting 60% upside from Thursday's close.
"Intel's Q2 beat/raise earnings call reconfirms the two pillars of our Buy thesis: 1) External manufacturing (foundry) customer discussions have reached a more tangible stage, leading to capex boost (positive semicaps), and 2) INTC's core server [central processing unit] business is strongly participating in the ongoing agentic cycle, with data center sales surging 59% YoY, INTC's best growth rate in the past 15 years.
We reiterate Buy and continue to view INTC's U.S.-based leading-edge capacity and strong backing by the White House as long-term competitive moats.
Risk-wise we must watch for any capital market action to fund the capex, though we note INTC has other levers re: non-core asset disposals, plus potential customer prepayments as alternatives."
Bernstein: market-perform, $110
Stacy Rasgon's $110 price target, up from $110, suggests nearly 10% upside from Thursday's close.
"[S]erver strength continues to outperform what are increasingly bullish expectations, commentary around 18A and 14A progress remains positive, and in an increasingly tight environment the general attitude toward Intel as a potential manufacturing partner (especially in packaging) is seemingly growing more constructive.
That being said, the PC flush we have worried about seems about to hit, the magnitude of what is going to be significantly increasing capex (while arguably a positive from a fundamental basis) remains nebulous for now, and the company's answer around the possibility of a future capital raise was perhaps not as dismissive as some might have wanted it to be, with the shares paring some of their aftermarket gains during the call.
But while we still struggle a bit with valuation, we admit to feeling better about Intel than we have in a while as the company (both through foresight and, admittedly, some luck) is pulling through, with both the market and narrative increasingly supportive."
Analysis
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