TLDR
- Intel stock fell 3.4% in premarket trading on Thursday despite a price target raise
- Susquehanna lifted its INTC price target from $80 to $115 ahead of Q2 earnings on July 23
- Analyst expects stronger Server CPU demand to drive better Q2 results
- PC builds in the second half of 2026 are expected to come in well below seasonal norms
- The server market supply/demand imbalance is projected to last until well into 2028
Intel (INTC) slipped 3.4% in premarket trading on Thursday, even as Susquehanna raised its price target on the chipmaker to $115 from $80 ahead of its second-quarter earnings report due July 23.
Analyst Christopher Rolland said the firm expects better Q2 results, driven mainly by stronger Server CPU demand and some improvement in PC ODM builds.
But the tone wasn’t entirely upbeat. Rolland flagged that PC builds in the second half of 2026 are expected to come in well below seasonal norms, hurt by worsening memory market conditions.
Intel is reportedly planning to prioritize its limited front-end wafer supply toward the server market, to capitalize on what Rolland called the “Agentic CPU renaissance.”
That means the company’s Client Computing Group (CCG) could face a tough stretch in what is typically the strongest seasonal period of the year for PC demand.
Server Strength Offers Some Support
On the server side, Rolland said recent channel checks pointed to continued strength, with the total addressable market still expanding.
The supply/demand imbalance in the server market is expected to persist well into 2028, which could support Intel’s server revenue for an extended period.
Margins are expected to come in broadly in line with estimates, helped in part by server price increases. That said, Intel’s Panther Lake/18A manufacturing process and its packaging business are expected to be dilutive through year-end.
Foundry Unit Showing Some Momentum
Intel’s Foundry unit also got a mention, with Rolland pointing to some early momentum, particularly in advanced packaging.
One expert highlighted promising prospects for Intel’s EMIB advanced packaging technology, with Google potentially eyeing EMIB-T for its next-generation TPUs.
On the 14A process node, management reportedly remains upbeat, with design commitments expected to begin emerging in the second half of 2026.
Intel’s market cap currently sits at around $503 billion, with a price-to-sales ratio of 8.75 — well above the industry median of 2.95.
Insider activity has leaned negative, with $6.5 million worth of stock sold over the past three months and no insider buying reported in the same period.
Intel is set to report Q2 results after the close of trading on July 23.
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