Intel (INTC) continues to report improving fundamentals, though justifying the company's valuation relative to its peers remains a limiting factor, Wedbush said in a Friday note.
Wedbush said Q2 revenue, gross margin and earnings per share exceeded both management's guidance and the firm's estimates, supported by strong server compute demand, higher pricing, favorable product mix and improved yields.
The firm also said management's Q3 outlook appears beatable given continued demand conditions and models 2026 revenue of $63.49 billion and earnings per share of $1.58.
The brokerage said increased investment tied to 14A and 18A ramps, along with higher capital-spending plans for 2026 and 2027, signals greater confidence in Intel's technology roadmap and foundry progress.
Wedbush maintained its neutral rating on Intel and raised its price target to $98 from $60.
Price: $96.45, Change: $-3.78, Percent Change: -3.77%