Intel (INTC) Stock: What a Top Analyst Sees After the 32% Pullback

TLDR

• Mizuho analyst Vijay Rakesh cut Intel’s price target from $109 to $92, maintaining a Hold rating, with INTC trading near $95.80
• Intel hit a peak of $140.94 on June 22 but has since dropped roughly 32%, though it remains up 160% year-to-date
• Q2 2026 earnings beat expectations with $16.1 billion in revenue, up 25% year over year, and EPS of $0.42 vs. estimates of $0.21
• A $15 billion equity raise in August diluted existing holders and weighed on the stock
• CEO Lip-Bu Tan bought roughly $10 million in Intel stock in August; Wall Street consensus sits at Hold with an average target of $107.01

Intel ran hard. From under $25 a year ago to a June 22 peak of $140.94, the stock delivered a 400% gain in twelve months. Now it sits around $95.80, down about 32% from that high.

Intel Corp., INTC

That pullback has Wall Street asking the obvious question: buying opportunity or value trap?

Mizuho’s Vijay Rakesh, ranked 12th out of 12,498 analysts on TipRanks with a 64% success rate, just weighed in. He lowered his price target from $109 to $92 while keeping a Hold rating. At current prices, he essentially sees Intel as fairly valued, not a screaming sell.

The drop from the peak came in three waves. First, a sector-wide rotation in early July after Bank of America and Morgan Stanley flagged that AI chip valuations had outrun near-term demand. Second, an 8% post-earnings drop despite a blowout Q2 report, as investors were rattled by a GAAP diluted loss of $2.16 per share tied to restructuring charges and the absence of committed external foundry customers. Third, the August equity raise of $15 billion, which was necessary for Intel’s infrastructure buildout but hit existing holders through dilution.

Q2 Results Were Strong, But Markets Look Ahead

The Q2 numbers themselves were hard to argue with. Revenue came in at $16.13 billion, beating the $14.43 billion consensus by nearly $1.7 billion. EPS of $0.42 doubled the $0.21 estimate. The Data Center and AI segment grew 59% year over year to $6.3 billion. Foundry revenue rose 31% to $5.8 billion.

CEO Lip-Bu Tan called it Intel’s “strongest revenue growth in more than fifteen years.”

But the market’s reaction showed what investors are really focused on: not where Intel is today, but whether the foundry business can attract committed outside customers at scale.

What Rakesh Still Likes

Rakesh isn’t dismissing the bull case. He sees CPU-to-GPU ratios potentially improving from 1:4 today to 1:1 long term as agentic AI grows. Server CPU supply remains tight through 2027. Advanced packaging revenue could reach $3.5 billion by 2029, with external foundry revenue potentially adding another $3.5 billion as the 14A node matures.

He also flagged early signs of a PC corporate refresh cycle, supported by recent commentary from Dell.

Insider and Institutional Activity

CEO Lip-Bu Tan purchased 105,263 Intel shares on August 11 at $95 per share, totaling roughly $10 million. That brought his stake to over 1.3 million shares. Primecap Management also opened a new position worth over $10.5 billion in Q2.

On the other side, Nan Shan Life Insurance cut its Intel position by 56.9% in Q2, selling 222,786 shares.

Wall Street’s consensus across 31 analysts is Hold, with an average price target of $107.01. Rakesh at $92 sits at the cautious end of that range.

Intel has set Q3 2026 EPS guidance at $0.38, with full-year analyst estimates at $1.01 per share.

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