Buy, Hold or Sell Intel at Over $100?

"Intel makes the x86 CPUs that run most of the world's PCs and servers, and under CEO Lip-Bu Tan it has become a contract chip manufacturer with U.S. government backing, NVIDIA and SoftBank as shareholders, and a foundry competing for hyperscaler business."

"The run from the $20s last July to triple digits reflects six straight revenue beats, a working 18A node, and strategic partnerships. It also reflects investors who decided very quickly that the worst was over."

"Q1 2026 revenue grew 7.2% year over year to $13.58 billion, Data Center and AI climbed 22%, Intel Foundry grew 16%, and non-GAAP gross margin expanded 180 basis points to 41%. Tan framed the setup bluntly, arguing that the move "from foundational models to inference to agentic" is "significantly increasing the need for Intel's CPUs and wafer and advanced packaging offerings.""

"Q1 2026 produced a GAAP net loss of $3.73 billion on a $4.07 billion Mobileye goodwill impairment, free cash flow was negative $3.87 billion, and Intel Foundry is still losing roughly $2.5 billion a quarter. Trailing EPS is negative $0.60. Forward P/E is 101x."

Intel’s x86 CPUs power most PCs and servers, and the company has shifted toward contract manufacturing with U.S. government backing and foundry competition for hyperscaler business. Shares have surged after six straight revenue beats, progress on the 18A node, and strategic partnerships. Q1 2026 revenue rose 7.2% year over year to $13.58 billion, with Data Center and AI up 22%, Intel Foundry up 16%, and non-GAAP gross margin increasing 180 basis points to 41%. Intel’s Xeon 6 was selected for NVIDIA DGX Rubin NVL8 systems, Google signed a multiyear custom ASIC IPU co-development deal, and Intel joined the Terafab project. Despite demand outpacing supply, Q1 2026 included a GAAP net loss, negative free cash flow, and continued Intel Foundry losses, with a high forward P/E.

Read at 24/7 Wall St.