TLDR Intel shares declined 3.4% in Thursday’s premarket session despite receiving a price target upgrade Susquehanna boosted its INTC target from $80 to $115 in anticipation of Q2 results sch
Shares of Intel (INTC) dropped 3.4% during Thursday’s premarket session, despite receiving an upgraded price target from Susquehanna, which moved its forecast to $115 from a previous $80 target ahead of the company’s second-quarter financial results scheduled for July 23.
Christopher Rolland, an analyst with the firm, indicated expectations for improved second-quarter performance, primarily attributed to robust demand in the Server CPU segment alongside modest gains in PC original design manufacturer production.
However, the outlook contained cautionary elements. Rolland pointed out that PC manufacturing volumes during the latter half of 2026 are projected to fall significantly short of historical seasonal benchmarks, impacted by deteriorating conditions in the memory chip market.
Intel is purportedly planning to allocate its constrained front-end wafer capacity primarily toward the server segment, aiming to leverage what Rolland described as the “Agentic CPU renaissance.”
This strategic allocation suggests Intel’s Client Computing Group (CCG) may encounter challenges during what traditionally represents the peak seasonal window for personal computer demand.
Regarding the server business, Rolland noted that recent industry research indicated sustained momentum, with the addressable market continuing its expansion trajectory.
The mismatch between supply and demand within the server marketplace is projected to extend well into 2028, potentially providing sustained revenue support for Intel’s server operations over an extended timeframe.
Profitability metrics are anticipated to align closely with current forecasts, aided partially by upward pricing adjustments in the server segment. However, Intel’s Panther Lake/18A production process and its packaging operations are expected to weigh on margins through the end of the current year.
Intel’s Foundry division also received attention, with Rolland noting emerging traction, especially within advanced packaging capabilities.
One industry specialist emphasized encouraging opportunities for Intel’s EMIB advanced packaging platform, with Google reportedly considering EMIB-T technology for upcoming TPU generations.
Concerning the 14A manufacturing node, company leadership reportedly maintains an optimistic stance, with design commitments anticipated to surface during the second half of 2026.
Intel’s current market capitalization stands at approximately $503 billion, with its price-to-sales multiple at 8.75 — substantially exceeding the sector median of 2.95.
Insider transaction patterns have trended negative, showing $6.5 million in stock dispositions over the trailing three-month period with zero insider purchases recorded during the same timeframe.
Intel is scheduled to announce Q2 financial results following the market close on July 23.
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