Intel stock was up 1.65% in premarket trading Monday, sitting at $93.85. The stock opened the session at $92.32, with Nasdaq futures up 1.28% and S&P 500 futures up 0.79%.
The move comes after a strong Q2 earnings report last Thursday. Intel posted EPS of $0.42, doubling the consensus estimate of $0.21. Revenue came in at $16.13 billion, well above the $14.43 billion analysts expected.
That revenue figure is up 25.2% year-over-year and represents Intel’s fastest revenue growth in more than 15 years.
Q3 guidance also topped estimates, with Intel projecting EPS of $0.38. Management cited continued momentum from AI-related server chip demand and improving foundry execution.
Bank of America Securities analyst Vivek Arya told CNBC on Friday that Intel’s Q2 results show the company is gaining traction in AI infrastructure. He pointed to nearly 59% year-over-year growth in Intel’s core server CPU business as a key driver.
Arya said stronger products, a richer product mix, and growing demand from agentic AI deployments are helping Intel regain relevance in data centers.
He also argued that Intel’s position as a U.S.-based leading-edge manufacturer gives it strategic value. Customers committing hundreds of billions to AI infrastructure are actively looking for reliable domestic supply.
While Arya acknowledged Intel’s valuation may look stretched in the near term, he said operating leverage from the company’s turnaround could allow earnings to quadruple over the next three to four years.
He added that industrywide shortages of wafers, substrates, and leading-edge manufacturing capacity continue to shape customer decisions in Intel’s favor.
Arya also highlighted Intel’s higher capital spending, strategic hiring, and the appointment of a former SK hynix CEO to strengthen advanced packaging as signs that management is executing on its long-term plan.
Intel’s 18A and future 14A processes were flagged as potential competitive advantages as the company develops its domestic manufacturing capabilities.
On the institutional side, OMERS Administration increased its Intel position by 63% in Q1, purchasing 61,550 additional shares. Its total holdings now stand at 159,187 shares, valued at approximately $7.0 million.
Several other institutions also added to their positions. Sivia Capital Partners lifted its stake by 271.7% in Q2. NewEdge Advisors increased its position by 29.6%. Sei Investments added 9.9% to its holdings. Institutional investors now own 64.53% of the company’s stock.
On the insider side, EVP April Miller sold 40,256 shares on May 1st at an average price of $99.53, reducing her stake by 27.7%.
The stock carries a consensus “Hold” rating with an average price target of $107.67. Recent updates include Baird and KeyCorp both setting price targets of $125.00, while Morgan Stanley raised its target to $84.00.
Intel has a 52-week low of $18.97 and a 52-week high of $142.35.
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