Intel Stock Rises as AI Chip Demand and Data Center Growth Boost Outlook

Quick overview

INTC (Intel) stock started the day on a bullish track and is still showing positive performance in the European trading session on Tuesday. As of 7 July 2026, the Intel stock is trading at $122.20 level, showing a 1.54 percent gain in the last 24 hours.

However, the reason for its good performance can be linked to the higher demand for AI chips and the company’s better performance, which is evident from the fact that its Data Center & AI sales increased by 22 percent to 5.1 billion dollars, while Q1 total sales reached 13.6 billion dollars, up 7 percent.

Intel Shows Good Business Growth

If we talk in detail about the company’s excellent performance, Intel made 13.6 billion dollars in sales during its first three months of 2026, which is 7 percent higher than last year. Moreover, the best part was that the Data Center and AI business increased by 22 percent to 5.1 billion dollars.

Non-GAAP EPS was $0.29, which was better than expectations. Not only this, but the gross margin also improved and reached 41 percent.

In contrast to this, the company showed a net loss and EPS remained negative at -$0.73. This is because of the new changes, restructuring, and some one time expenses were higher. Despite this, the companys overall picture is positive, and investors are still showing interest in this stock.

Looking at all these positive things, the company expects revenue between 13.8 billion dollars and dollars 14.8 billion for the next three months, quarter 2. All investors are keeping thier eyes on its next full earnings report, which is scheduled to be released on 23 July 2026. These numbers will give fresh clues about company performance.

Why Experts Like Intel Stock

Many experts are watching Intel stock, and most analysts like this stock and advised to hold it. Their average target price is around $100. However, some experts are very positive, like one major bank, HSBC, which recently doubled its target price to $200 because it likes Intel Foundry, which is its chip manufacturing business. All these positive expectations have increased investors optimism.

In addition, Intel itself is making every possible effort to improve in the market. For example, Intel is building new factories in the United States, including a new facility in Santa Clara.

On the other hand, Intel has signed deals with other companies, such as Foxconn, for AI computers and servers. In addition, Intel is supporting the new AI chip company Syntiant, which has now filed for an IPO. Syntiant manufactures edge AI chips that are used in earbuds, cars, and small devices.

Apart from this, the company is also focusing heavily on its new 18A technology. This is an advanced chip manufacturing process that makes chips smaller, faster, and more energy efficient. Intel’s target is to launch strong products based on this technology in 2026.

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Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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