Intel reported a non-GAAP earnings per share of 42 cents for the second quarter, significantly surpassing the 21 cents expected by analysts, with revenue reaching $16.1 billion, a 25% increase year-over-year and above the consensus estimate of $14.42 billion. Following this announcement, Intel's stock rose approximately 4% in after-hours trading and continued to show gains in pre-market trading.
The company's shares have surged 172% in 2026, driven by increased demand for its central processing units, particularly due to the artificial intelligence boom. Under CEO Lip-Bu Tan, who took the helm in March 2025, Intel is also focusing on expanding its foundry business to attract more clients for its advanced semiconductor manufacturing capabilities.
Despite the positive earnings report, analysts from various investment banks have maintained their ratings, reflecting a cautious outlook. Wells Fargo's Aaron Rakers noted that while progress is encouraging, uncertainties regarding Intel's gross margin recovery and increased competition from companies like AMD and Arm-based CPUs warrant a neutral stance.
Rakers raised his price target for Intel to $120, suggesting a 17% upside from the previous close. Goldman Sachs analyst James Schneider has a neutral rating with a price target of $150, citing Intel's potential benefits from rising server demand but also highlighting the stronger visibility and risk/reward profiles of its competitors.
JPMorgan's Harlan Sur set a new price target of $85, indicating an underweight rating due to concerns about capital expenditures and supply shortages. In contrast, Bank of America analyst Vivek Arya maintains a buy rating with a price target of $160, emphasizing Intel's strong performance in the server market and its strategic position in the foundry sector.
Bernstein's Stacy Rasgon has a market-perform rating with a price target of $110, acknowledging the positive momentum but expressing caution regarding future capital expenditures and potential market fluctuations