Chip stock Intel (INTC) might be in the best position it has been in for quite some time. With the artificial intelligence (AI) market starting to pivot in favor of central processing units (CPUs), this is giving Intel a great opportunity to stage a comeback and deliver its best product to a market dying for these chips. But Intel is not alone in the CPU market, and the competition is getting brisk. Brisk enough for investors to take notice. Intel shares fell over 3% in Thursday afternoon’s trading.
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Intel’s share of the server CPU market actually fell by 370 basis points in the first quarter of 2026. While it still has a clear majority at 54.9%, it is clearly going in the wrong direction. The biggest issue is the rise of Intel’s competitors, particularly AMD (AMD) and Arm Holdings (ARM). The good news here is that the total server CPU market was itself up 19%, even as Intel’s share of that market declined.
With the total server CPU market set to reach $170 billion by 2030, there is clearly plenty of room here for further growth for all concerned. But Intel will need to work to secure its own share of that market, as opposed to losing ground in an expanding market. This is especially true given the huge run-up in Intel shares seen over the last six months.
“Official Compute Partner”
Meanwhile, Intel took a big step forward to become the Official Compute Partner of McLaren Racing. It will be Official Compute Partner of the McLaren Mastercard Formula 1 Team and the Arrow McLaren IndyCar Team. And, Intel will also be Official Partner of the McLaren F1 Sim Racing Team.
Intel CEO Lip-Bu Tan noted, “Formula 1 racing and IndyCar are some of the ultimate proving grounds for high-performance computing. Intel is proud to be McLaren Racing’s compute partner, and to be part of a team that thrives on precision, speed, and innovation. Together, Intel and McLaren will push the boundaries of what’s possible, transforming data into competitive advantage at every turn.”
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on 11 Buys, 24 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 458.19% rally in its share price over the past year, the average INTC price target of $82.70 per share implies 29.22% downside risk.
