Shares of chipmaker Intel (INTC) are down sharply at the time of writing after the company posted mixed second-quarter results. Revenue came in higher than expected, but earnings per share missed estimates because of restructuring costs. As a result, investors remain worried about Intel’s foundry business and its struggle to regain market share from competitors like AMD (AMD). Some analysts also suggested that revenue may have been boosted by customers rushing to buy chips ahead of tariffs.
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One of the biggest announcements from Intel was the update on its manufacturing plans. According to J.P. Morgan’s five-star analyst, Harlan Sur, Intel will not move forward with its next-generation 14A node unless it secures a large external customer, which could indicate a shift toward a more “fabless” model in the next three to four years. As a result, J.P. Morgan believes that Intel will likely continue to lose market share to AMD in the meantime and has kept a Sell rating on the stock, although it has slightly raised its price target to $21.
Separately, five-star Morgan Stanley analyst Joseph Moore has concerns about Intel’s future margins due to ongoing costs associated with the 18A process and the Lunar Lake chip rollout, which are expected to continue to be a drag into next year. In addition, a possible slowdown in the PC market could make these challenges even worse. KeyBanc, however, was slightly more positive, stating that it had seen early signs of improvement and raised its 2026 estimates. Still, five-star analyst John Vinh maintained a neutral rating since he expects the company’s turnaround to take time.
Is Intel a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 25 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average INTC price target of $22.11 per share implies 6.8% upside potential.
