Intel will likely report strong financial results Thursday, driven by robust demand for chips that power agentic artificial intelligence. The report will be incredibly important for the shares to rebound from the market's recent rotation away from chip stocks.
Intel is scheduled to report second-quarter earnings after the stock market closes Thursday. Analysts surveyed by FactSet expect the tech hardware company to post adjusted earnings of 22 cents per share on revenue of $14.4 billion.
In the same period last year, Intel reported a loss of 10 cents a share on revenue of $12.9 billion.
Intel -- a 2026 Barron's stock pick -- has soared 187% this year as investors bet that the company will continue to benefit from the continuing strong demand for chips that power AI. Intel has specifically seen a surge in demand for its CPUs, or the chips that help power agentic AI, as that technology becomes increasingly popular.
"The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic," Intel CEO Lip-Bu Tan said in the company's last earnings release on April 23. "This shift is significantly increasing the need for Intel's CPUs and wafer and advanced packaging offerings,"
Wall Street doesn't expect that demand to slow down soon.
"We expect server CPU volumes to grow double-digits through the year," RBC Capital Markets analyst Srini Pajjuri wrote Monday. He rates Intel stock as Sector Perform with an $80 price target.
On top of chip demand, news of layoffs could also be discussed when the company reports earnings Thursday after the close. Intel is planning job cuts within its data-center group as part of a broader strategy to "become a more focused and efficient company," a spokesperson told Barron's on Wednesday.
Analysts will also be looking for the company to disclose details on a potential new customer in Apple. The Wall Street Journal reported in May that the iPhone maker and Intel reached a preliminary agreement for Intel to manufacture some of the chips that power Apple devices. Then President Donald Trump said in a social media post on June 18 that Apple had agreed to work with Intel to design and build its chips in the U.S.
Despite the demand boost, cost-cutting efforts, and potential new partnerships, Intel stock has dropped 5.1% from its all-time closing high of $140.94 on June 22, 2026 and is on pace for its worst month since August 2024, according to Dow Jones Market Data.
There has been a broad rotation out of chip stocks that Intel hasn't been immune to. Some on Wall Street worry that the continued spending on AI hardware isn't sustainable and will eventually cool off. Those fears, along with massive chip stock runs, have led to a recent selloff in the sector.
Intel earnings and guidance will provide some much-needed clarity on the timeline for continued chip demand as these concerns still loom.
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