Intel Corp (NASDAQ:INTC, XETRA:INL) shares reversed sharply on Friday, falling more than 4% after an initial surge after Thursday’s bell as investors weighed a mixed picture from Wall Street analysts following the chipmaker’s second-quarter results.
Intel beat expectations with $0.42 in pro-forma earnings per share, nearly double consensus estimates, on revenue that topped forecasts by 12%. Data center sales jumped 59% year-over-year, marking the company’s best growth rate in 15 years, according to Bank of America. Third-quarter guidance of $16.3 billion also came in well above Street estimates.
Despite the beat, analysts were split on what it means for the stock.
Wedbush raised its price target by more than 50% to $98 but maintained a Neutral rating, citing valuation concerns. “We still struggle to justify Intel’s valuation, particularly relative to its peers, and thus remain on the sidelines with regard to the stock,” the firm wrote, noting that gross margins remain closer to historical lows despite favorable demand conditions.
Bank of America reiterated its Buy rating, raising 2026 through 2028 earnings estimates by 20% to 40%. The firm pointed to progress in Intel’s foundry business and strength in server CPUs tied to the broader AI buildout as reasons for optimism, calling Intel’s US-based manufacturing capacity and government backing “long-term competitive moats.”
BofA flagged the need to fund rising capital expenditures as a risk, though it noted Intel has other levers available, including asset sales and customer prepayments.
Jefferies described the quarter as a “seventh consecutive beat and raise,” driven by better pricing and record server revenue growth. The firm raised its 2026 EPS estimate by 34%. Jefferies said an increase in planned 2027 capital spending, layered on top of this year’s raised $20 billion-plus budget, signals that external foundry customers are moving from evaluation toward firmer commitments.
Still, the firm cautioned that the outlook was “not thesis-changing” and pointed to a Q3 guide showing data center sales roughly flat quarter-over-quarter due to ongoing supply constraints.
All three firms highlighted supply as a limiting factor, with Wedbush noting that Intel compute remains among the hardest components to source in the server supply chain.
Management also pointed to progress on its 14A manufacturing process, telling analysts the company has hit milestones needed to deliver a key design kit in October and is stepping up investment ahead of planned production in 2027 and 2028.