Intel Reports Strong Q2 Earnings but Faces Skepticism from Analysts
Intel reported better-than-expected second-quarter earnings, with pro-forma EPS of $0.42—nearly double estimates—and revenue exceeding forecasts by 12%. Data center sales surged 59% year-over-year to the company's best growth in 15 years. Despite these results and raised third-quarter guidance above Street expectations, Intel shares fell sharply after an initial post-earnings rally as analysts remained cautious. Analysts were divided on how much optimism should be placed in the report. Wedbush upgraded its price target but kept a Neutral rating due to valuation concerns. Bank of America reiterated a Buy rating and raised earnings estimates for 2026–2028, citing progress in Intel's foundry business and AI-related server CPU demand. Jefferies noted seven consecutive beats and raises but said the outlook was not transformative. All three firms highlighted ongoing supply constraints as limiting factors, with Wedbush noting that Intel compute remains among the hardest components to source.
Topics: AI demand analyst ratings earnings foundry business stock reaction