Intel INTC Stock Rises as 18A Progress and Fortinet Partnership Boosts Turnaround Hopes
Intel stock has reclaimed the psychologically important $100 level ahead of second-quarter earnings, as improving 18A manufacturing yields, stronger processor prospects, and new foundry partnerships give investors renewed confidence in the company's turnaround strategy.
Quick overview
- Intel stock has regained the $100 level ahead of its second-quarter earnings report, reflecting renewed investor confidence in the company's turnaround strategy.
- Key developments, including improved manufacturing yields and expanded AI partnerships, have contributed to a recent 8.4% increase in Intel's stock price.
- The upcoming earnings report is critical for Intel, as it will test the viability of its recovery efforts and the effectiveness of its new strategies.
- Despite positive momentum, Intel faces significant competition and must demonstrate consistent execution to maintain investor support.
Intel stock has reclaimed the psychologically important $100 level ahead of second-quarter earnings, as improving 18A manufacturing yields, stronger processor prospects, and new foundry partnerships give investors renewed confidence in the company’s turnaround strategy.
Intel Stock Reclaims $100 Ahead of Earnings as Turnaround Hopes Strengthen
Intel Corporation shares have regained the key $100 level ahead of the company’s second-quarter 2026 earnings report, with investors increasingly focused on whether the chipmaker’s turnaround strategy is beginning to deliver tangible results.
Intel stock jumped 8.4% to $105.45 on July 21, supported by several positive developments involving its processor business, AI partnerships, and semiconductor manufacturing operations.
The rebound comes at an important time. Intel is scheduled to report its second-quarter results after the market closes on Thursday, July 23, with Wall Street expecting approximately $14.4 billion in revenue and $0.22 in non-GAAP earnings per share.
The earnings release could provide an important test of whether recent optimism surrounding Intel’s recovery is justified.
Three Catalysts Drive Intel Stock Higher
The latest rally was supported by three key developments.
Intel announced an update to its Xeon 6700P platform, with the new performance improvements enabling memory speeds of up to 8,000 MT/s and potentially increasing total memory bandwidth by as much as 20%.
Production is expected to begin between August and September 2026, providing Intel with another opportunity to strengthen its position in the competitive server processor market.
The company has also expanded its AI-related partnership with Google Cloud, reinforcing its efforts to remain relevant as demand for AI computing infrastructure continues to grow.
Perhaps most importantly, Intel secured a major manufacturing commitment involving its advanced 18A process node, potentially strengthening the company’s ambitions to build a competitive external foundry business.
18A Manufacturing Progress Supports Foundry Strategy
Intel’s manufacturing progress is becoming increasingly important to the company’s investment case.
Recent reports indicated that 18A yields had improved to approximately 85%, compared with around 65% in the previous quarter. That progress would place Intel closer to the manufacturing efficiency achieved by leading competitors.
TSMC’s N2 process has reportedly reached yields approaching 90%, meaning Intel is still behind the industry leader but appears to be narrowing the gap.
ASML has also confirmed Intel as the first company to utilize High-NA EUV technology for volume production, potentially providing a significant technological advantage as the semiconductor industry moves toward increasingly advanced manufacturing processes.
For investors, the improvement in 18A yields is critical. Intel’s foundry strategy requires the company to prove that it can manufacture advanced chips at competitive yields and costs.
Fortinet Partnership Provides Foundry Validation
Intel’s agreement with Fortinet represents another potentially important development.
Fortinet has become the first publicly named cybersecurity customer for Intel Foundry, giving the manufacturing division an important external customer and potentially validating Intel’s ambition to become a major semiconductor manufacturing partner.
The relationship could benefit both companies. Fortinet gains access to Intel’s advanced manufacturing capabilities, while Intel gains the opportunity to demonstrate that its foundry business can serve specialized semiconductor customers.
However, investors will likely want to see more than individual contracts.
The long-term success of Intel Foundry depends on building a substantial pipeline of external customers and converting those relationships into meaningful, recurring revenue.
Processor Revenue Remains Critical Ahead of Earnings
Intel’s Client Computing Group remains a major contributor to overall revenue, making processor demand a key focus of the upcoming earnings report.
The segment could benefit from new product launches, improving AI PC adoption, and an enterprise PC replacement cycle.
Intel has also introduced its Core Series 3 processors, targeting mainstream computing users with improvements in performance, responsiveness, and efficiency.
The company is additionally expanding into handheld gaming through its Arc G-Series processors, with upcoming devices from manufacturers such as Acer, MSI, and OneXPlayer potentially supporting demand.
PC Strategy Offers Another Growth Opportunity
Intel is also attempting to capitalize on the emerging AI PC market.
Its strategy combines local processing with cloud-based capabilities, potentially allowing users to run certain AI workloads directly on their devices.
If AI-enabled PCs achieve widespread adoption, Intel could benefit from increased demand for processors capable of handling more advanced workloads locally.
However, competition remains intense, and Intel will need to demonstrate that its AI PC strategy can generate meaningful revenue rather than simply expanding its product lineup.
INTC Stock Returns Above $100
From a technical perspective, Intel’s return below the $100 level signals continued uncertainty.
The stock has repeatedly attracted buyers near this psychological support zone, but recent rebounds have lacked strength as investors remain hesitant.
A sustained recovery would likely require stronger earnings results, clearer progress on 18A manufacturing, and evidence that Intel can compete more effectively against AMD and other semiconductor rivals.
For now, Intel’s turnaround story remains promising but unproven.
The company’s investments in Ireland and advanced manufacturing provide long-term potential, but investors appear unwilling to overlook near-term risks. Until Intel demonstrates consistent execution, the stock may continue facing volatility around the $100 level.
INTC Chart Daily – Finding Support at the 100 SMA
The speed of the upside move and the clear break above $100 indicates that investors are increasingly willing to accumulate shares at perceived value levels. While sustained upside momentum will require further confirmation, the structure has improved meaningfully, despite the recent pullback. The 20 daily SMA held as support for a while but was eventually broken and INTC stock slipped below the $100 level but reclaimed it again today.
Competition Remains a Major Risk
Intel continues to face intense competition from AMD and other global semiconductor companies.
AMD has gained significant ground in data centers, increasing pressure on Intel’s historically important and profitable server business.
At the same time, expanding semiconductor production in China and other regions is contributing to concerns about global capacity and future pricing pressure.
For Intel, the path toward a sustainable recovery therefore remains challenging.
INTC Stock Outlook Hinges on Earnings
The recovery above $100 provides a positive technical signal ahead of earnings, but investors remain cautious.
Stronger processor revenue, improving margins, and the Fortinet foundry partnership could reinforce confidence in Intel’s turnaround.
However, the company still needs to demonstrate consistent execution, successful 18A manufacturing, and meaningful growth in its foundry customer base.
The upcoming earnings report could therefore become a crucial catalyst for INTC stock.
If Intel delivers stronger-than-expected results and provides convincing evidence of progress in manufacturing and foundry operations, the $100 level could become stronger support. However, disappointing guidance or renewed concerns over execution could quickly put the stock’s recovery under pressure.
Earnings Become Critical Test for Intel Recovery
Intel’s upcoming earnings report represents an important moment for investor confidence.
The company is expected to benefit from stronger server demand and improving margins, factors that could provide short-term support for the stock.
After years of financial pressure and declining competitiveness, investors are looking for evidence that Intel’s restructuring efforts are beginning to deliver measurable results.
A stronger-than-expected earnings report could temporarily improve sentiment and help INTC reclaim the $100 level.
However, the market is likely to focus beyond quarterly numbers. Investors want confirmation that Intel can consistently improve profitability, execute its manufacturing roadmap, and regain market share against stronger rivals.
Earnings Expectations
- Revenue & EPS: Wall Street estimates range between $13.80 billion and $14.80 billion, with the Zacks Consensus pegging sales at $14.42 billion. Management previously guided a midpoint of $14.3 billion.
- Margins: This will be a critical test for the company. Management’s guidance sits at roughly 37.5% to 39% gross margins, which will reflect how well the company is navigating costs as it ramps up new manufacturing nodes like 18A
Intel’s $5 Billion Ireland Expansion Supports Long-Term Strategy
Despite short-term challenges, Intel continues investing aggressively in its future manufacturing capabilities.
The company recently announced a €5 billion expansion of its Leixlip manufacturing campus in County Kildare, Ireland.
The investment is designed to strengthen Intel’s European manufacturing footprint and support production of advanced processors, including next-generation Xeon 6 chips.
The expansion is part of Intel’s broader strategy to rebuild its manufacturing leadership and create a more diversified semiconductor supply chain outside Asia.
European officials have welcomed the investment as an important step toward strengthening regional semiconductor production.
However, investors remain focused on whether these large capital commitments can translate into improved financial performance.
Building manufacturing capacity is only the first step. Intel must prove that these facilities can produce competitive chips at attractive margins.
Intel Stock Faces a Key Technical Test
Intel’s recent rally has brought the stock close to an important technical hurdle.
The 50-day moving average near $106.94 represents the next major resistance level. A sustained breakout above that area could strengthen the bullish technical outlook and potentially open the way toward $116.70.
However, failure to break above resistance could trigger another pullback, particularly if the upcoming earnings report disappoints investors.
With expectations for second-quarter revenue of $14.4 billion and adjusted EPS of $0.22, Intel faces a high-stakes test.
The company appears to be making progress across processors, AI partnerships, and advanced manufacturing, but investors will now want proof that these developments are translating into stronger financial results.
For Intel stock, reclaiming $100 is an encouraging step. The next challenge is proving that the recovery can extend beyond a short-term rally and develop into a sustainable turnaround.
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