Intel has become one of the AI stocks closely watched by analysts. Ahead of Thursday’s quarterly earnings report, Stifel analyst Ruben Roy raised Intel’s price target from $21.00 to $24.50 while maintaining a Hold rating. This will be the first full financial report under the leadership of new CEO, Lip Bu Tan.
Investors are expected to focus on Intel’s long-term plans, including progress on the 18A chip production, the expansion of 14A capacity, as well as portfolio restructuring involving the divestment of non-core units and investments in AI-based hardware and software.
This quarter’s financial results are expected to align with consensus estimates:
- Revenue: $12 billion
- Adjusted gross margin: 36.2%
- Adjusted earnings per share (EPS): $0.01
Although Stifel remains optimistic about the second half of 2026 and early 2027 as key periods for Intel’s growth, they are holding their recommendation until a clearer catalyst emerges.
Intel itself is a producer of computing hardware and AI-based solutions across various industries. However, some analysts believe there are other AI stocks with higher upside potential and lower risk compared to INTC.
Intel is scheduled to report its latest quarterly earnings on Thursday after the market closes. In the previous quarter, the company beat analysts’ revenue expectations by 2.6%, reporting $12.67 billion—flat compared to the prior year. However, its revenue projection for the upcoming quarter slightly misses market expectations.
For the current quarter, analysts forecast:
- Revenue: $11.93 billion (down 7.1% YoY)
- Adjusted EPS: $0.01
Most analysts have maintained their projections over the past 30 days, indicating stable expectations for Intel’s performance. Nonetheless, Intel has missed Wall Street’s earnings estimates twice in the past two years.
From an industry perspective, several of Intel’s competitors have released their Q2 earnings:
- Penguin Solutions: Revenue up 7.9% YoY (missed estimates by 1.4%)
- Micron: Revenue up 36.6% YoY (beat estimates by 4.9%)
Even so, market reactions were mixed—Penguin shares rose 10.6% while Micron shares dropped 1.2%.
Over the past month, the semiconductor sector has shown positive sentiment with an average stock increase of 7.8%. Intel’s shares themselves rose 10.4% and are currently trading at $23.40, above analysts’ average price target of $21.71.
Earning Projection Prediction
WHAT THE ANALYST STATED
