Intel's 225% Stock Surge Driven by AI Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18 hours ago
0mins
Source: Fool
- Stock Recovery: Intel's stock has surged approximately 225% in 2026, rebounding from below $18, indicating renewed investor confidence, particularly as the potential in the AI market becomes more apparent.
- Data Center Growth: In its first-quarter results, Intel reported revenue of $13.6 billion, a 7% year-over-year increase, with its data center and AI division revenue climbing 22% to $5.1 billion, and operating margins more than doubling from 14% to 31%, showcasing strong performance in the AI sector.
- Importance of CPUs: As AI workloads evolve, CPUs are re-emerging as a core component in the AI era, with Intel's CEO noting that CPUs are becoming increasingly vital in inference and task coordination, potentially expanding their market share significantly.
- Facing Challenges: Despite the CPU resurgence being a major catalyst, Intel still faces challenges, posting a loss of $3.7 billion last quarter, with its foundry unit losing approximately $2.4 billion, and the current high valuation increases the risk of future execution issues.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 120.890
Low
20.00
Averages
39.30
High
52.00
Current: 120.890
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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