Intel Corporation (NASDAQ:INTC) saw its shares rise in premarket trading on Friday, August 7, 2026, as Wall Street analysts sharply raised their earnings forecasts for the chipmaker following a strong quarterly report. The stock was indicated at $101.25 at 04:57 EDT, up 1.44% from Thursday's close of $99.81. Regular trading on U.S. exchanges begins at 09:30 EDT.
The premarket move comes amid a broader reassessment of Intel's financial outlook. Consensus estimates for third-quarter adjusted earnings per share (EPS) have jumped 46% over the past month, while full-year 2026 EPS forecasts have climbed 38%. These revisions follow Intel's second-quarter earnings release, which exceeded pre-release consensus by a wide margin: revenue came in at $16.13 billion versus an expected $14.42 billion (an 11.9% beat), and adjusted EPS of $0.42 was double the $0.21 estimate.
Intel's guidance for the current quarter also topped expectations. The company projects third-quarter revenue of $16.30 billion at the midpoint, 7.9% above the consensus of $15.10 billion, and adjusted EPS of $0.38, compared to the $0.27 analysts had anticipated. The improved outlook has led to a wave of upward estimate revisions across the board, with Q4 2026 EPS estimates rising 35.5% to $0.42 and FY2027 forecasts up 29.1% to $2.04.
Investors have responded positively to the news. Intel shares gained 10.7% over the five sessions leading into Thursday, with Tuesday's 10.84% surge accounting for the bulk of that advance. That day also saw the Philadelphia Semiconductor Index rise 6.6%, suggesting that broad risk appetite in the chip sector contributed to the rally. However, Thursday's 1.24% decline broke a three-session winning streak, and volume remained below the stock's 50-day average of 122.6 million shares. Despite the recent gains, Intel's stock still trades 29.9% below its June 30 high.
The most significant improvement is visible in Intel Foundry, the company's contract manufacturing arm. Foundry segment revenue rose 30.5% year-over-year to $5.765 billion, while its operating loss narrowed by 34.1% to $2.089 billion. The implied operating margin improved by 35.5 percentage points to -36.2%. Perhaps more importantly, the foundry loss now equals 43% of Intel Products' operating profit, down from 118% a year earlier. Intel Products earned $4.82 billion in operating profit last quarter, while the foundry lost $2.09 billion, resulting in consolidated operating income of $1.80 billion.
This ratio is a key metric for investors, as Intel's segment sales include substantial internal manufacturing work. A continued decline in the loss-to-product-profit ratio would support further re-rating of the stock, though one quarter does not establish a trend. Chief Executive Lip-Bu Tan emphasized that "AI is driving unprecedented demand for compute," and the company announced that its 18A-P process node has entered risk production. Tan has also committed to high-volume 14A production by 2028, a milestone that could attract external customers.
Analyst sentiment remains cautious, however. The consensus rating is Overweight, but 31 of 54 recommendations are Holds. The median price target is $118, implying 18.2% upside from Thursday's close, while the average target is $121.72, suggesting 22% upside. Targets range widely from $75 to $200, reflecting the unresolved value of Intel's foundry business. Peer trading was mixed on Thursday: Advanced Micro Devices (NASDAQ:AMD) rose 1.42%, Taiwan Semiconductor Manufacturing (NYSE:TSM) gained 1.00%, and Nvidia (NASDAQ:NVDA) slipped 0.18%.
Risks remain. Intel raised its capital-spending forecast to $20 billion from $18 billion, and foundry losses are still substantial. The company needs additional 14A customer commitments to justify the investment. Process delays, weaker demand, and export restrictions could also slow the recovery. The near-term earnings recovery is now visible in consensus estimates, but the next re-rating must come from foundry conversion rather than another forecast catch-up. Investors should monitor foundry losses relative to product profits, external design wins, and 14A milestones.
