Intel stock’s (NASDAQ: INTC) turnaround story got louder in recent days, but so did the valuation debate around it.
The chipmaker is under the spotlight after first-quarter 2026 revenue of $13.58 billion and non-GAAP earnings of 29 cents a share, both ahead of expectations.
Intel guided second-quarter revenue to $13.8 billion to $14.8 billion and non-GAAP EPS to 20 cents, also above Wall Street’s estimates.
The market’s reaction was immediate as Intel stock surged more than 28% to about $83, briefly pushing the company past its dot-com-era peak and lifting its market value above $416 billion.
What changed after earnings
This was not a routine beat as investors heard a much more confident message from management, with demand for Intel’s server CPUs strengthening in AI data centers.
At least 23 brokerages raised their price targets after the print, while the stock’s median target jumped to $75 from $46.50 a month earlier.
Intel also now trades at about 90 times forward earnings, a striking multiple for a company that spent much of the past few years struggling to regain credibility.
Intel’s AI exposure is not coming through graphics chips, where Nvidia dominates. It comes through central processors that power inference workloads.
CEO Lip-Bu Tan has framed the recovery as a balance-sheet and execution story, and the company’s latest numbers gave that narrative fresh momentum.
Intel said its data center and AI segment brought in $5.1 billion in the quarter, ahead of expectations.
Why KeyBanc went to $110
KeyBanc’s move to $110 from $70 is the most aggressive bullish call in the latest wave of upgrades.
In a note, the firm said Intel’s first-quarter results were driven by stronger server CPU demand from agentic AI, while its data center and AI division grew 22% year over year.
KeyBanc also pointed to gross margin improvement to 41%, helped by higher prices and better yields on Intel’s 18A process.
The firm said the foundry business is showing improved 18A yields with commitments expected later this year for 14A.
The bull case assumes Intel can keep converting AI-related CPU demand into durable revenue, keep manufacturing on track, and prove that its foundry ambitions are more than a long-term promise.
Intel stock has already more than doubled in 2026, so the market is clearly beginning to price in a cleaner, faster recovery.
Is it too late to buy INTC?
Even after the rally, Wall Street is far from unanimous.
TipRanks currently shows Intel with a Hold consensus and an average price target of $77, based on 10 Buy ratings, 22 Hold ratings, and three Sell ratings in the current month.
The median target is around $75 after the post-earnings revisions, which still sits below Intel’s recent trading level near $83.
The company has improved sharply, but the share price may already be discounting a lot of the good news.
For buyers, the decision now is less about whether Intel had a strong quarter and more about whether the next leg of the turnaround can arrive quickly enough to justify the new valuation.
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