Intel climbs as profit forecast above estimates

The company expects third-quarter revenue in the range of $15.8 billion to $16.8 billion, with the midpoint higher than analysts' average estimate of $15.10 billion, according to data compiled by LSEG.

Intel posts second-quarter adjusted EPS of 42 cents and revenue of $16.13 billion, both beating analysts' consensus estimates of 21 cents and $14.42 billion.

Thirteen of 48 brokerages rate the stock "buy" or higher, 32 rate it "hold" and three rate it "sell"; their median target price is $109, data compiled by LSEG shows.

As of the last close, the stock had risen 171.6% year to date, compared with a 74.3% increase in the Philadelphia Semiconductor Index .SOX.

At least three brokerages raise price targets on the stock, with the steepest being J.P. Morgan's hike to $85 from $45.

Brokerage Morningstar says INTC's success comes from soaring demand for server CPUs to power agentic AI, with the company's data center and AI revenue growing 59% in the second quarter year over year. It believes the raise is driven by a stronger near- and long-term outlook for the server CPU market, with Intel benefiting from rising AI-driven demand.

Intel's INTC.O shares rise 6% to $106.29 premarket after the company forecasts third-quarter profit ahead of estimates.