The company’s results, due Thursday, will reveal whether the optimism that has pushed Intel’s shares sharply higher this year is supported by improving business fundamentals. Intel’s stock has surged nearly threefold in 2026 as investors have responded to its turnaround efforts and growing demand for artificial intelligence-related computing.
Analysts expect Intel to record its strongest quarterly revenue growth in roughly six years, driven by a recovery in demand for central processing units (CPUs), which are increasingly being deployed to support AI applications and intelligent software agents.
Beyond its chip sales, investors are closely watching developments around Intel’s contract manufacturing arm, known as its foundry business. The division has gained attention after securing new partnerships, including a reported agreement involving Tesla, as Intel attempts to compete with established chip manufacturers in producing processors for other companies.
One of the biggest issues surrounding Intel is the possibility of a manufacturing agreement with Apple. U.S. President Donald Trump announced in April that Apple could work with Intel to produce processors, though neither company has officially confirmed the arrangement. A deal of that scale would provide a significant boost to Intel’s foundry ambitions and strengthen its credibility as a global chip manufacturer.
Despite the strong rally earlier in the year, Intel shares have faced recent pressure. The stock has fallen more than 25% from its record closing price on June 22 amid a wider decline in semiconductor stocks. However, it remains up about 185% for the year, reflecting renewed investor confidence in the company’s long-term recovery prospects.
Intel continues to face challenges, particularly from weaker personal computer demand and profit margins that remain far below the levels the company historically achieved. While artificial intelligence has created new opportunities for its processors, the company is still working to overcome years of manufacturing setbacks and increased competition.
Analysts at Bernstein said they have become more optimistic about Intel’s direction, although they warned that the company’s underlying financial picture remains difficult.
"We admit to feeling better about the company than we have in some time as both the market and narrative grow more supportive, though fundamentals overall still remain somewhat on the challenging side," Bernstein analysts said.
Intel also benefited last quarter from tight supply conditions, which allowed it to sell some chips that had previously been considered unlikely to generate significant demand. These included older-generation and lower-performance products that had been placed on hold.
According to estimates compiled by LSEG, Intel is expected to report second-quarter revenue of $14.42 billion, representing a 12.1% increase from the same period a year earlier. Adjusted earnings are projected at 21 cents per share.
The company’s data center and AI division is expected to deliver one of the strongest performances, with analysts forecasting revenue growth of 36.4% to $5.37 billion as businesses continue expanding their AI infrastructure.
However, profitability remains a key concern. Adjusted gross margin is expected to come in at 38.8%, with analysts at TD Cowen noting that margins are being weighed down by heavy investments in Intel’s foundry expansion and the costs associated with introducing new manufacturing technologies.
As Intel attempts to reclaim its position among the world’s leading semiconductor companies, Thursday’s results will offer investors a clearer picture of whether its AI-driven comeback is gaining real momentum or whether significant hurdles remain.