Core acceleration, with capex boost confirming foundry deals, Buy

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Core acceleration, with capex boost confirming foundry deals, Buy

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Intel

Core acceleration, with capex boost

confirming foundry deals, Buy

Reiterate Rating: BUY | PO: 160.00 USD | Price: 100.23 USD

Reiterate Buy on multiple company-specific vectors 23 July 2026

Intel’s (INTC) Q2 beat/raise earnings call reconfirms the two pillars of our Buy thesis: 1) Equity

External manufacturing (foundry) customer discussions have reached a more tangible

stage, leading to capex boost (positive semicaps), and 2) INTC’s core server CPU Key Changes

business is strongly participating in the ongoing agentic cycle, with data center sales

surging 59% YoY, INTC’s best growth rate in the past 15 years. We reiterate Buy and (US$) Previous Current

continue to view INTC’s US-based leading-edge capacity and strong backing by the 2026E Rev (m) 58,251.7 62,861.9

White House as long-term competitive moats. Risk-wise we must watch for any capital 2027E Rev (m) 66,933.4 73,115.6

market action to fund the capex, though we note INTC has other levers re non-core 2028E Rev (m) 76,886.8 84,702.9

asset disposals, plus potential customer prepayments as alternatives. 2026E EPS 1.06 1.49

2027E EPS 1.72 2.09

2028E EPS 2.53 3.01Raise CY26/27/28E EPS by 20-40%

INTC beat Q2 sales by 12% with 42c pf-EPS, nearly double consensus, on 59% YoY data

center growth. Q3 guidance midpoint of $16.3bn was $1.3bn/8% above consensus,

prompting us to raise our CY26/27/28E EPS by 20–40%. Supply constraints held Q3 Vivek Arya

QoQ growth to 1-2%, but added supply later in the quarter should drive strong Q4 ResearchBofAS Analyst

growth. While INTC faces stiff x86 (AMD) and ARM competition in server CPU, we see vivek.arya@bofa.com

the $200bn+ CY30 TAM (4x current levels) and INTC's capacity as key tailwinds.