Intel (INTC) Stock Pops 12% as AI Demand Fuels Best Quarter in Years

TLDR

• Intel reported Q2 EPS of $0.42 vs. $0.21 expected, and revenue of $16.1B vs. $14.4B expected
• Revenue grew 25% year-over-year — Intel’s fastest sales growth in nearly 15 years
• Intel Foundry revenue hit $5.8B, up 31% from the prior year, beating estimates
• Q3 guidance of $0.38 EPS and $15.8B–$16.8B revenue topped Wall Street forecasts
• INTC stock is up 172% in 2026, though still ~29% below its all-time high of $140.94

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Intel delivered a blowout second quarter, and Wall Street noticed. The stock jumped 12% in after-hours trading Thursday before settling up around 4% in Friday’s premarket, opening at $100.23.

Intel Corp., INTC

Q2 adjusted EPS came in at $0.42, doubling analyst expectations of $0.21. Revenue hit $16.1 billion against a $14.4 billion estimate. A year ago, Intel posted a loss of $0.10 per share on $12.9 billion in revenue. That’s a dramatic swing.

CEO Lip-Bu Tan pointed to AI as the engine behind the results. “AI is driving unprecedented demand for compute,” he said, adding that Intel is “well-positioned to capture sustainable growth” across its CPU business, ASICs, and foundry network.

Intel Foundry brought in $5.8 billion for the quarter, up 31% year-over-year and ahead of the $5.6 billion analysts had penciled in. Fortinet was named as a new Intel Foundry customer, adding to investor confidence in the manufacturing side of the business.

The Numbers That Matter

Data center and AI revenue jumped 59% year-over-year. Overall revenue grew 25%, the fastest pace in nearly 15 years. These aren’t small moves for a company that had been written off by many.

For Q3, Intel guided for EPS of $0.38 and revenue between $15.8 billion and $16.8 billion. That’s above the Wall Street consensus of $0.27 EPS and $15.1 billion in revenue.

The company also said it plans to “meaningfully increase” investments in equipment, clean room space, and substrates to support expected growth through 2027.

Analyst Sentiment Stays Cautious

Despite the beat, the consensus analyst rating on INTC remains a Hold, with a price target of $102.77. Of the analysts covering the stock, 15 have a Buy rating, 29 a Hold, and 3 a Sell. Two have Strong Buy ratings.

Raymond James upgraded Intel to “moderate buy” in April. Freedom Capital went to “strong buy.” Robert W. Baird raised its price target from $50 to $75, though kept a neutral rating. KGI Securities moved the other way, cutting from outperform to neutral with a $71 target.

On the institutional side, Mizuho Markets Americas slashed its INTC position by 99% in Q1, selling 841,355 of its 850,000 held, leaving just 8,645 left worth roughly $382,000. Other institutions moved in the opposite direction, with iA Global Asset Management boosting its stake by 17% in Q4.

INTC is up 172% in 2026, but it has pulled back sharply from its June 22 all-time closing high of $140.94 — down about 29% from that peak. The stock’s 52-week range sits between $18.97 and $142.35.

Sell-side analysts expect full-year 2026 EPS of $0.65 for Intel.