INTC's stronger 2026 growth outlook, AI PC momentum and price gains outweigh its premium valuation, making it the better chip pick than QCOM.
INTC's 25% revenue jump, surging data center sales and AI PC growth point to a stronger recovery, even as margin and China risks persist.
As the morning rush settles and we swing into midday trading, let's take a quick look at a few of the biggest trends circling Wall Street this early afternoon: Can't Get Too Much Intel Chipmaker Intel Corp (NASDAQ:INTC) made headlines yesterday with its $15 billion common stock offering to support AI consumer demand, and is doubling down today.
Intel is expanding its planned stock offering to $20 billion as the chipmaker steps up investments in artificial intelligence and semiconductor manufacturing, even as the move raises concerns about shareholder dilution. The company said late Monday it increased the size of the offering from the initially announced $15 billion.
Intel is upgraded to a 'Buy' as a robust turnaround gains momentum, with a nearly 30% stock pullback improving risk/reward. Q2 revenue surged 25.4% YoY, led by 59% growth in Data Center & AI and 31% in Foundry, signaling accelerating business activity and segment strength. Margins are expanding sharply, with non-GAAP operating margin up 21.1 percentage points and Q3 guidance above consensus on both top and bottom lines.
A $10,000 investment in Intel (NASDAQ: INTC) a year ago would be worth almost $50,000 today after the Nvidia (NASDAQ: NVDA)-backed chipmaker delivered a roughly 370% return over the past 12 months.
Every AI-adjacent company is chasing the same problem right now: how do you pay for the buildout?
Stocks looked set to struggle for direction on Tuesday as investors worried about inflation, with hopes of Iran agreeing a deal to reopen the crucial Strait of Hormuz shipping route fading fast.
Intel on Tuesday said it would increase the size of its offering of new shares by an additional $5 billion to $20 billion.
Intel plans to raise $20 billion by way of an underwritten public offering of 210.5 million shares priced at $95 each.
Intel has emerged as one of the market's top performers over the past year, staging a 375% rally, despite a 31% pullback from its high. Monday's $15 billion equity raise will support Artificial Intelligence growth efforts and strengthen the company's balance sheet. Intel's valuation has improved recently as surging analyst estimates have outpaced the rise in share price.
Intel shares fell Monday after the chipmaker announced plans to issue $15 billion of stock to meet booming demand for AI-enabling semiconductors.