"Intel posted non-GAAP EPS of $0.29 on revenue of $13.58 billion, beating revenue estimates by 9.22% and growing 7.18% YoY. Data Center and AI revenue jumped 22% to $5.05 billion and Intel Foundry rose 16%. A $4.07 billion Mobileye goodwill impairment produced a GAAP loss, but the operational story improved."
"The bull case rests on three pillars. First, Lip-Bu Tan's claim that "The ratio of CPU to GPUs used to be 1-to-8, and now it is 1-to-4, and I think it could move towards parity or even better." Second, the multiyear Google partnership on custom ASIC IPUs and Xeon 6 selection as the host CPU for NVIDIA's DGX Rubin NVL8. Third, advanced packaging demand running at "billions of dollars per year"."
"Real upside could come from Intel 18A winning a marquee external foundry customer, or from agentic AI workloads driving the CPU-to-GPU ratio toward parity as CEO Lip-Bu Tan suggests. Treat our target as one datapoint. The full bull case follows below."
"If 18A wins external commitments and the ASIC business compounds off its current north of a billion dollar run rate, INTC could push toward our bull-case $98.52 ceiling, with peaks near $116.38."
Intel shares have risen sharply over the past year and year to date, but a $88.66 24/7 Wall St. price target is below current trading levels. The target could be wrong if Intel 18A secures major external foundry customers or if agentic AI workloads increase the CPU-to-GPU ratio toward parity. Intel’s Q1 FY2026 results showed non-GAAP EPS of $0.29 on $13.58 billion revenue, with data center and AI revenue up 22% and Intel Foundry up 16%. Mobileye goodwill impairment drove a GAAP loss, while operational performance improved. The bull case also includes a Google partnership for custom ASIC IPUs, Xeon 6 selection for NVIDIA DGX Rubin NVL8, and advanced packaging demand at billions of dollars per year.
Read at 24/7 Wall St.
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