Why It’s Time to Load Up on Intel Stock

Intel (INTC) shares have regained momentum following their recent pullback. INTC stock has climbed more than 19% over the past week amid reports that the semiconductor giant plans to raise CPU prices.

Robust demand and improved pricing could meaningfully boost Intel's revenue and earnings, supporting further gains in its stock price. INTC stock has already surged about 188% so far in 2026, reflecting the company’s improving operating performance and the strength of its Data Center and AI (DCAI) segment.

With momentum continuing and pricing action supporting margins, Intel could soon retest its previous all-time high of $142.35, indicating more than 34% upside from its current price.

Strong Demand and Pricing to Support Intel’s Growth

Intel is well positioned to benefit from rapidly rising demand for computing capacity as companies worldwide continue to invest heavily in AI and broader computing infrastructure. Its broad portfolio of computing products, ranging from conventional CPUs and GPUs to specialized ASICs and processors designed for emerging agentic AI workloads, positions it well to capitalize on demand.

Favorable demand conditions along with improved pricing could meaningfully boost Intel’s revenue and profitability. The company’s recent financial performance suggests its operational turnaround is gaining momentum. Intel reported $16.1 billion in revenue for the second quarter, while its AI-related businesses expanded by more than 70% year-over-year.

The DCAI segment was a key growth driver, generating $6.3 billion in revenue, up 59% year-over-year and 24% sequentially. Solid demand from both hyperscale customers and enterprises supported growth. Intel’s purpose-built silicon portfolio also continued to gain traction, with revenue increasing approximately 20% sequentially and nearly tripling from the prior year.

Demand from cloud providers and enterprise customers has strengthened as businesses recognize the importance of CPUs in supporting AI infrastructure. Intel reported that year-over-year server growth in the second quarter was its strongest on record. At the same time, Xeon 6 has emerged as one of the company’s fastest-ramping products, indicating stronger execution and solid customer adoption.

Intel’s prospects have also improved through additional strategic customer wins and long-term agreements secured during the quarter. It is also focused on increasing manufacturing capacity and improving factory productivity.

Besides a solid top line, Intel reported an adjusted gross margin of 41.8% in Q2, up significantly from 29.7% in Q2 of the prior year and 80 basis points sequentially. The improvement reflected stronger revenue, better manufacturing yields, and higher average selling prices resulting from product mix and pricing initiatives. Adjusted earnings per share reached $0.42, more than double the company’s $0.20 guidance, supported by higher revenue, improved gross margins, and stronger operating leverage.

Going forward, several factors could contribute to further margin and earnings improvement. Higher manufacturing volumes, a stronger product mix, additional pricing benefits, and disciplined cost management could collectively strengthen Intel’s margins and earnings.

Further, Intel also has several potentially significant growth opportunities. Markets such as Physical AI, purpose-built silicon, advanced packaging, and external wafer manufacturing could each develop into multibillion-dollar annual revenue opportunities over the coming years. The global expansion of AI and computing infrastructure therefore presents substantial opportunities across both Intel’s product business and its foundry operations.

Intel Stock to Surge Higher

Intel’s rally has pushed its valuation significantly higher, with INTC trading at a forward earnings multiple of 95.2, well above its industry peers. Its high valuation explains why analysts remain cautiously optimistic, with the consensus currently at a “Moderate Buy.”

Despite the premium valuation, robust demand, higher pricing, expanding AI-related businesses, and margin expansion point to a favorable earnings trajectory for Intel. In addition, manufacturing efficiencies, advanced packaging, and external foundry services could provide additional upside. With strong operational momentum and emerging growth opportunities, Intel stock has room to run further and is a Buy and Hold.

On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.