Intel beats and raises, but Wall Street isn't buying the rally

Intel Corp (NASDAQ:INTC, XETRA:INL) shares reversed sharply connected Friday, falling much than 4% aft an archetypal surge aft Thursday's doorbell arsenic investors weighed a mixed representation from Wall Street analysts pursuing the chipmaker's second-quarter results.

Intel bushed expectations with $0.42 successful pro-forma net per share, astir treble statement estimates, connected gross that topped forecasts by 12%. Data halfway income jumped 59% year-over-year, marking the company's champion maturation complaint successful 15 years, according to Bank of America. Third-quarter guidance of $16.3 cardinal besides came successful good supra Street estimates.

Despite the beat, analysts were divided connected what it means for the stock.

Wedbush raised its terms people by much than 50% to $98 but maintained a Neutral rating, citing valuation concerns. "We inactive conflict to warrant Intel's valuation, peculiarly comparative to its peers, and frankincense stay connected the sidelines with respect to the stock," the steadfast wrote, noting that gross margins stay person to humanities lows contempt favorable request conditions.

Bank of America reiterated its Buy rating, raising 2026 done 2028 net estimates by 20% to 40%. The steadfast pointed to advancement successful Intel's foundry concern and spot successful server CPUs tied to the broader AI buildout arsenic reasons for optimism, calling Intel's US-based manufacturing capableness and authorities backing "long-term competitory moats."

BofA flagged the request to money rising superior expenditures arsenic a risk, though it noted Intel has different levers available, including plus income and lawsuit prepayments.

Jefferies described the 4th arsenic a "seventh consecutive bushed and raise," driven by amended pricing and grounds server gross growth. The steadfast raised its 2026 EPS estimation by 34%. Jefferies said an summation successful planned 2027 superior spending, layered connected apical of this year's raised $20 billion-plus budget, signals that outer foundry customers are moving from valuation toward firmer commitments.

Still, the steadfast cautioned that the outlook was "not thesis-changing" and pointed to a Q3 usher showing information halfway income astir level quarter-over-quarter owed to ongoing proviso constraints.

All 3 firms highlighted proviso arsenic a limiting factor, with Wedbush noting that Intel compute remains among the hardest components to root successful the server proviso chain.

Management besides pointed to advancement connected its 14A manufacturing process, telling analysts the institution has deed milestones needed to present a cardinal plan kit successful October and is stepping up concern up of planned accumulation successful 2027 and 2028.