Goldman Sachs Raises Estimates for Intel After Strong Q2 Earnings
Intel delivered an impressive second-quarter performance with revenue reaching $16.1 billion, a 25% year-over-year increase and the strongest growth in over 15 years. Non-GAAP earnings per share of $0.42 nearly doubled analyst expectations at $0.22. Goldman Sachs responded by raising its estimates for Intel by an average of 49%, while maintaining a Neutral rating and unchanged price target of $150. The Data Center and AI segment was the primary growth driver, with revenue hitting $6.3 billion—up 59% year-over-year—and strong demand in server CPUs expected to continue through at least 2028. Intel also exceeded expectations for Client Computing ($8.9 billion) and Foundry segments ($5.8 billion). The company announced a €5 billion investment to expand manufacturing capacity, including the launch of its advanced 14A process node. Goldman highlighted strategic advancements in Intel’s technology roadmap, such as entering risk production on the 18A-P chip using ASML's EUV lithography and raising capital expenditure guidance for 2026. Despite the strong results, Goldman noted that while Intel outperformed expectations across all metrics, its closest peers may still offer more attractive investment opportunities.