INTC Stock Slips to $65 as Investors Reposition Pre Q1 – Intel Earnings Preview

Intel Q1 2026 Earnings Preview – Scheduled to report Q1 2026 earnings on April 23, 2026

Key Earnings Expectations

Revenue:

• Forecast around $12.4 billion
• Range: $11.92B – $13.51B
• Slight YoY decline of approximately -1.9%

Earnings Per Share (EPS):

• Expected near break-even
• Range: $0.00 – $0.02
• Segment Highlights

Data Center:

• Expected revenue: ~$4.22B – $4.7B
• Seen as a key recovery driver, supported by AI demand

Client Computing Group:

• Likely to decline, reflecting weaker PC demand trends
• Foundry Services (IFS) Focus
• Estimated revenue: ~$4.88 billion

Key investor focus:

• Progress on 18A process node (yield improvements)
• Ability to compete with global foundry leaders
• Critical to Intel’s long-term transformation strategy

Key Themes to Watch

• CPU traction vs competitors
• Execution on manufacturing roadmap (18A)
• Margin stabilization and cost control
• Signs of broader business turnaround

• Margin Pressure: Intel guided for a 34.5% non-GAAP gross margin, down significantly from 39.2% a year ago, reflecting pressures from capacity utilization and mix.
• 18A Node Progress: Investors are watching the yield rates on the 18A process node, with reports indicating 60%+ yields, which is key to long-term foundry success.
• Stock Rally: Despite shaky earnings, Intel shares have seen a significant rally (roughly 56%+ over the past month), highlighting market anticipation for a positive turnaround.
• Turnaround Outlook: While Q1 may remain challenging, projections suggest revenue acceleration in the latter half of the year.

Strategic Projects Drive Optimism

A major contributor to Intel’s recent rally has been its involvement in large-scale infrastructure initiatives, including the Terafab project linked to ventures associated with Elon Musk.

The project aims to build advanced computing and robotics capabilities, placing Intel at the center of next-generation technology development. This has reinforced confidence in the company’s ability to remain relevant in an increasingly competitive semiconductor landscape.

Partnerships Strengthen Market Position

Intel has also deepened its collaboration with Google, integrating its Xeon processors into AI-focused data center infrastructure. These partnerships highlight Intel’s continued push into high-performance computing and cloud markets.

At the same time, competition remains intense, particularly from NVIDIA, which continues to dominate key segments of the AI chip market.

Foundry Strategy and Capital Confidence

Intel’s foundry business is becoming a central pillar of its long-term strategy. By offering manufacturing services to external clients, including major technology companies, Intel is positioning itself as an alternative to Taiwan Semiconductor Manufacturing Company.

Technologies such as advanced packaging solutions are enhancing its competitiveness, while recent capital decisions further signal confidence. The company’s move to repurchase its Fab 34 stake in Ireland from Apollo Global Management underscores its commitment to expanding manufacturing capabilities.

Outlook

While Intel’s recent pullback reflects short-term caution, its broader trajectory remains tied to execution in AI and foundry services. The upcoming earnings report will be critical in determining whether the recent rally can resume or if further consolidation lies ahead.