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Intel Q2 Beat Supports Buy Thesis on Foundry, Server Growth, BofA Says

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Intel's (INTC) second-quarter revenue and earnings beat, along with above-consensus third-quarter guidance, reinforce Bank of America Securities' Buy thesis on progress in external foundry discussions and rising server-CPU demand tied to the agentic-AI cycle, the brokerage said in a Thursday report.

Intel reported second-quarter revenue of $16.13 billion, about 12% above consensus, and non-GAAP EPS of $0.43, nearly double consensus expectations, according to BofA.

Its third-quarter revenue guidance midpoint of $16.3 billion was about 8% above consensus.

BofA said Intel's discussions with potential external manufacturing customers have reached a more tangible stage, contributing to higher capital-expenditure forecasts.

The brokerage also cited 59% year-over-year growth in Data Center and AI revenue, which it described as Intel's strongest growth rate in 15 years.

The firm reiterated its Buy rating and $160 price objective, citing Intel's U.S.-based leading-edge manufacturing capacity and White House support as long-term competitive advantages.

BofA raised its 2026, 2027 and 2028 EPS estimates to $1.49, $2.09 and $3.01, respectively, from $1.06, $1.72 and $2.53 previously.

Intel's first firm commitment to develop its 14A process technology, higher 2026 and 2027 capital-spending forecasts, and the hiring of former SK Hynix Chief Executive Seok-Hee Lee to lead Intel Foundry's advanced-packaging business are signs of potential external-foundry progress, the analysts said.

Price: $96.19, Change: $-4.04, Percent Change: -4.03%

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