Intel (NASDAQ:INTC | INTC Price Prediction) shares rose 3% Friday morning to $103.05, extending a striking turnaround after a blowout Q2 2026 report delivered Thursday after the close. The chipmaker carries a market value of $503.76 billion, and Intel stock is up 178% year to date (YTD).
The move looks idiosyncratic. Broadcom (NASDAQ:AVGO) stock is down 1% at $390.41, Advanced Micro Devices (NASDAQ:AMD) shares are up 1% at $546.20, and NVIDIA (NASDAQ:NVDA) stock sits flat at $208.20. The iShares Semiconductor ETF (NASDAQ:SOXX), a concentrated fund holding all four names, trades flat at $549.68.
Traders are treating Intel’s report as a single-name earnings reaction rather than a broad chip-sector catalyst. The NASDAQ 100 is essentially unchanged as well.
Earnings Beat and Upbeat Q3 Guide Drive the Pop
Intel reported Q2 revenue of $16.13 billion, up 25% year over year (YoY), topping the $14.45 billion consensus by 12%. The company’s non-GAAP EPS came in at $0.42, nearly double the $0.2166 estimate, swinging from a $0.10 loss a year earlier.
Intel’s segment strength was broad. Data Center and AI revenue surged 59% to $6.26 billion, Client Computing rose 13% to $8.88 billion, and Intel Foundry climbed 31% to $5.77 billion. Management guided Q3 revenue to $15.8 billion to $16.8 billion, above the $15.06 billion consensus, with non-GAAP EPS of $0.38.
Intel CEO Lip-Bu Tan, driving the ongoing turnaround, stated that “Our Q2 results represent our strongest revenue growth in more than fifteen years, enabled by greater speed, accountability, and customer focus.” He added that “AI is driving unprecedented demand for compute.”
Foundry Wins and Analyst Response
Foundry momentum is fueling the response. Alphabet‘s (NASDAQ:GOOGL) Google reportedly ordered 3 million custom TPUs from Intel’s foundry, per The Information, while NVIDIA is said to be weighing Intel as a backup manufacturer given Taiwan Semiconductor Manufacturing‘s (NYSE:TSM) capacity constraints serving NVIDIA, Advanced Micro Devices, and Apple (NASDAQ:AAPL).
Intel also raised its full-year capex to $20 billion from $18 billion, signaling confidence in foundry and product demand. Wall Street is following through: at least six analysts raised their price targets on Intel stock, and the median target sits 9% above the last close, per LSEG.
The execution numbers back the enthusiasm. Intel’s non-GAAP operating margin swung from -4% a year ago to 17%, and operating cash flow jumped 242% YoY to $7.01 billion. Panther Lake began high-volume manufacturing, and Xeon 6+ launched as the first server-class product on Intel 18A.
The Caveats Behind the Beat
Foundry losses remain a drag. Intel Foundry ran a $2.1 billion operating loss in Q2 despite the revenue jump, and GAAP results reflected an $11 billion net loss tied to a $12.53 billion non-cash CHIPS Act escrow charge. The turnaround is real; Intel’s manufacturing arm still needs to prove sustained profitability.
Data center layoffs announced earlier this week also linger as a workforce question. However, with AI capex from hyperscalers still ramping (Alphabet reported strong quarterly capex and NVIDIA guided to strong Q2 revenue), near-term product demand remains supportive for Intel and its foundry pipeline.
What to Watch
Traders may want to watch for whether Intel stock holds above $100 into the close and whether analyst target hikes broaden into rating upgrades next week. Execution on the Intel 18A-P ramp, Panther Lake shipments, and additional foundry customer signings could shape the next leg of the story.
Intel’s foundry narrative is a major swing factor. Confirmation of the Google engagement and any incremental customer wins, particularly with NVIDIA reportedly evaluating Intel as a backup, would validate the 18A investment case and help offset the ongoing Intel Foundry losses.
The sector context also matters. If AI capex momentum from Alphabet, Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META) continues to accelerate into second-half prints, Intel’s DCAI franchise and foundry pipeline should stay supported even as peers like NVIDIA, Broadcom, and AMD trade flat on the day.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks