Intel NASDAQ:INTC won broad support from Wall Street after delivering better-than-expected second-quarter results, but analysts remain divided on whether the company's valuation and foundry ambitions justify its recent rally.
The chipmaker topped expectations on both earnings and guidance, driven by strong demand for data center processors. Bank of America reiterated its Buy rating and $160 price target, arguing Intel's server CPU business is benefiting from the agentic AI buildout while customer interest in its foundry business is becoming more tangible.
Not everyone is convinced. Needham kept its Hold rating, pointing to continued market share losses in data center CPUs, a lack of competitiveness in AI accelerators and what it considers a rich valuation. Wedbush also stayed on the sidelines despite raising its price target to $98, saying Intel's improving fundamentals are already reflected in the stock.
Analysts also highlighted Intel's expanding capital spending as a positive for semiconductor equipment makers and memory suppliers, with higher CPU production expected to drive demand for components throughout the AI supply chain.