Key Highlights
- Q2 revenue reached $16.1 billion, surpassing Wall Street projections of $14.4 billion by approximately $1.8 billion
- Earnings per share hit $0.42, effectively doubling analyst consensus of $0.21
- Year-over-year revenue expansion of 25.2% represents the company’s strongest performance in over 15 years
- Bernstein lifted its price target to $110; the Street average now stands at $107.67
- Shares have skyrocketed 346% during the past 12 months, with the stock priced at $89.57 as of the latest report
Intel delivered a quarter that exceeded expectations across the board. The semiconductor giant reported Q2 revenue totaling $16.1 billion alongside earnings per share of $0.42, significantly outperforming analyst forecasts of $14.4 billion and $0.21. Shares were changing hands at $89.57, reflecting a remarkable 346% climb over the trailing year, despite pulling back from recent peaks.
The company’s top-line expansion of 25.2% on a year-over-year basis represents Intel’s most robust revenue performance in more than a decade and a half.
The Client computing division powered results with $8.9 billion in quarterly revenue — approximately $900 million beyond Street expectations — fueled primarily by elevated average selling prices. Meanwhile, the Datacenter business generated $6.3 billion, substantially exceeding the $5.5 billion analyst consensus, with management highlighting that customer demand is significantly outpacing available supply.
Gross profit margins reached 41.8%, comfortably beating the consensus projection of 39.2%.
Wall Street Boosts Price Objectives
Multiple investment firms adjusted their outlook following the earnings release. Bernstein increased its price objective to $110 from a previous $100, maintaining a Market Perform rating. Truist elevated its target to $108. DA Davidson adjusted upward to $100. Baird established the Street’s most optimistic target at $125, emphasizing constrained supply dynamics and potential datacenter revenue expansion.
TD Cowen maintained its $115 price target, acknowledging robust demand and enhanced production capacity while noting possible margin headwinds on the horizon. Stifel made a modest reduction to $110 based on valuation considerations, though recognizing the quarter’s strength.
The consensus analyst price target across Wall Street currently registers at $107.67. The ratings composition includes two Strong Buy recommendations, fifteen Buy ratings, twenty-nine Hold designations, and three Sell ratings.
According to InvestingPro data, 29 analysts have adjusted earnings projections higher for the upcoming period. However, the platform’s Fair Value analysis suggests the shares may be trading above fundamental value at present levels.
Institutional Ownership Expands
Van Diest Capital LLC initiated a fresh stake during the first quarter, acquiring 6,562 shares valued at approximately $290,000. Institutional investors and hedge funds now control 64.53% of Intel’s shares outstanding, with multiple smaller asset managers establishing new holdings in recent reporting periods.
Regarding insider transactions, EVP April Miller Boise divested 40,256 shares on May 1st at an average execution price of $99.53, trimming her stake by 27.7%.
Intel commenced Monday’s trading session at $92.32. The stock’s 12-month range spans from a low of $18.97 to a high of $142.35. The 50-day moving average currently registers at $115.84.
Looking ahead to Q3, Intel has issued guidance for EPS of $0.38. The full-year consensus estimate among sell-side analysts stands at $0.65 in earnings per share.
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