Intel Stock Just Got a Stunning Price Target Hike Ahead of Earnings. How to Play INTC From Here.

Wall Street just delivered another vote of confidence for Intel (INTC) ahead of one of the company's biggest catalysts of the year. Susquehanna recently raised its price target on INTC stock to $115 from $80 while maintaining a "Hold" rating, arguing that second-quarter results are shaping up better than previously expected. The firm's channel checks point to stronger server CPU demand and healthier PC builds than anticipated, giving investors fresh optimism just days before Intel reports earnings on July 23.

The upgrade comes after a volatile stretch for the semiconductor giant. Intel shares have pulled back sharply from their June highs as investors have locked in profits across AI-related chip stocks. 

The big question now is whether the recent weakness offers a buying opportunity, or whether expectations remain too high heading into earnings.

Intel's Rally Has Cooled, But Expectations Remain High

Intel has been one of the semiconductor sector's biggest winners this year despite its recent correction. INTC stock has surged roughly 185% year-to-date (YTD). After soaring during the first half of 2026, Intel hit a 52-week high of $142.35 in June before running into heavy profit-taking. 

Shares have since dropped about 21% over the past month and now trade roughly 25% below their peak as investors have rotated out of high-flying AI names amid a broader semiconductor selloff.

Susquehanna believes Q2 demand has held up better than expected, particularly in Intel's server CPU business, which continues benefiting from growing interest in agentic AI workloads. However, the firm also warned that memory market weakness could weigh on PC demand during the second half of the year, prompting Intel to prioritize its limited wafer capacity toward higher-margin server processors.

A Strong Earnings Report Could Reinforce Intel's AI Story

Intel is scheduled to report Q2 results after the market closes on July 23. Wall Street expects earnings of $0.22 per share on revenue of approximately $14.45 billion, largely in-line with management's prior guidance of $13.8 billion to $14.8 billion in revenue and non-GAAP earnings of $0.20 per share.

The company enters the report with solid momentum after delivering a major Q1 surprise. Intel posted adjusted earnings of $0.29 per share, well ahead of the consensus estimate of just $0.01, while revenue climbed 7% year-over-year YOY) to $13.6 billion.

Looking ahead, options pricing is bracing for a roughly 15% move following earnings. Valuation alone leaves little room for disappointment if management delivers cautious guidance. Investors will be closely watching management's outlook for the second half, server CPU demand, PC market trends, foundry progress, and updates on AI-related customers.

Intel Continues Expanding Its AI and Foundry Business

Intel has continued strengthening its long-term AI strategy.

The company recently expanded its partnership with Alphabet's (GOOGL) Google Cloud to deploy Gemini Enterprise across Intel's workforce while integrating agentic AI tools into chip development. Google Cloud is also increasing computing capacity available to Intel's engineering teams to help accelerate semiconductor design.

Meanwhile, manufacturing progress keeps increasing at Intel. Industry reports indicate that Intel has improved the yields of its more advanced 18A process up to about 85%, close to the best yields in the market from Taiwan Semiconductor (TSM). The company has also won more foundry and advanced packaging designs from Big Tech firms, while the U.S. government's CHIPS Act helps advance domestic manufacturing ambitions.

These initiatives are a core part of Intel's resuscitation plan, with management striving to make the company a market leader in chip design and one of the world's biggest contract manufacturers.

Wall Street Remains Split on Intel Stock

Despite Susquehanna's higher price target, Wall Street remains divided on how to value Intel. Based on 45 analysts with coverage, INTC stock has a consensus "Moderate Buy" rating. The average price target of $108.68 implies modest potential upside of 3% from current levels.

Some firms remain significantly more optimistic on Intel. For instance, HSBC recently doubled its target price to $200 while maintaining a “Buy” rating, arguing Intel's foundry business is becoming a credible alternative to TSMC and could unlock substantial long-term value. KeyBanc also lifted its target to $155, citing accelerating demand for server CPUs tied to agentic AI and growing confidence in Intel's manufacturing roadmap.

Not everyone is convinced. Rosenblatt continues to rate INTC stock as a “Sell” despite recently raising its target to $65, reflecting concerns that execution risks surrounding manufacturing and foundry expansion remain substantial.