Goldman Sachs Raises Estimates for Intel After Strong Q2 Earnings
Intel delivered its strongest quarterly performance in over a decade with second-quarter revenue reaching $16.1 billion, up 25% year-over-year and exceeding both Goldman Sachs' and consensus estimates. Non-GAAP earnings per share of $0.42 nearly doubled expectations at $0.22. The Data Center and AI segment led the growth, driven by strong demand for general-purpose servers and agentic AI solutions. Goldman Sachs responded to Intel's results with a revised 49% average increase in its estimates while maintaining a Neutral rating and an unchanged price target of $150 per share. Analysts highlighted strategic advancements such as entering risk production on the 18A process, expanding manufacturing capacity for Xeon processors, and planning significant capital expenditures to support future technology launches like the 14A process. Despite Intel's strong performance, Goldman noted that its closest peers still offer more attractive risk-reward profiles. The company is currently experiencing a server CPU market with double-digit growth expected through at least 2028.
Topics: Goldman Sachs analysis Intel Q2 earnings beat stock performance