Intel (INTC) stock climbed 12% higher on Thursday on the back of a strong earnings report, which saw its data center and AI revenue surge. Indeed, Intel has shown strong performance with a 25% year-over-year revenue growth and a 59% increase in Data Center/AI revenue. Despite Thursday’s gains, the stock remains down over 34% in the last month, reflecting a potential shift in momentum.
Chip stocks as a whole are showing strong gains this week as earnings season continues. The iShares Semiconductor ETF (SOXX) jumped 8%, delivering broad AI-chip exposure across the sector without the single-stock execution risk of Intel or Advanced Micro Devices (AMD). AMD is also up 13% on Thursday, while shares of Taiwan Semiconductor Manufacturing (TSM) rose 7% similarly.
Speaking of TSMC, TSMC and Intel are locked in a race over the future of advanced semiconductor manufacturing, especially as AI spending and capital expenditure have ballooned with demand outstripping supply. TSMC is already the dominant player in advanced chip manufacturing, but Intel has begun to close that gap since the arrival of new CEO Lip-Bu Tan. Now, it is attempting to rebuild its foundry business after years of manufacturing setbacks. Intel’s 18A technology is expected to reach high-volume production in 2026, a key milestone for its foundry ambitions.
What Else Has Driven INTC Higher This Year
Furthermore, Intel has landed several deals with big-name tech in the last year, further proving its growth potential and reinforcing its strong earnings. Customers like Apple and Tesla have poured their own investments into deals with Intel, while the latter’s sales have grown quarterly. INTC stock has delivered a more than 350% return over the past 12 months, with a 52-week range of $18.97 to $142.35. Shares have seen tremendous growth this year, with the stock climbing 151% year-to-date (YTD) and roughly 100% over the last six months. However, INTC stock is under some pressure in the near term as it has slipped more than 7% in the past five days and 33% over the past month.
Also Read: Microsoft (MSFT): What’s Behind the Stock’s 15% Rally Today
Fortunately, Intel’s Q2 2026 earnings have provided a sign of reversal and hope. This past quarter marked the company’s strongest quarterly revenue growth in more than 15 years, beating the analyst consensus estimate of $14.4 billion. For Q3 2026, Intel also guided revenue of $15.8 billion to $16.8 billion with adjusted EPS of $0.38 and a gross margin of approximately 42%, well above the analyst consensus of $15.1 billion in revenue and $0.28 in EPS. This guidance led several firms to reiterate buy-and-hold ratings on INTC stock this week, including Bank of America, Truist Financial, and Mizuho. Based on 33 Wall Street analysts who have offered 12-month price targets for Intel in the last 3 months. The average price target is $119.11 with a high forecast of $200.00 and a low forecast of $80.00. The average price target represents a 29.02% change from the last price of $92.32.
