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INTC Stock Before Q3 Earnings: Is It a Smart Buy or Risky Move?
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Key Takeaways
Intel is set to report Q3 earnings on Oct. 29, with estimates of $16.44 billion in sales and 39 cents in EPS.
Intel's AI expansion, Google Cloud partnership and new platforms could boost revenues.
Intel shares have surged 119.9% in a year, outperforming the industry, while rising competition poses risks.
Intel Corporation (INTC - Free Report) is scheduled to report third-quarter 2026 earnings after the closing bell on Oct. 29. The Zacks Consensus Estimate for sales and earnings is pegged at $16.44 billion and 39 cents per share, respectively. Over the past 60 days, earnings estimates for INTC have increased from $1.47 to $1.50 per share for 2026 and from $1.93 to $1.99 per share for 2027.
INTC Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise History
The leading semiconductor manufacturer delivered a stellar four-quarter earnings surprise of 1,296.9%, on average, beating estimates on each occasion. In the last reported quarter, the company’s earnings surprise was 100%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Intel for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intel currently has an ESP of +2.22% with a Zacks Rank #2.
In the third quarter, Intel expanded its multi-year collaboration with Alphabet Inc.'s (GOOGL - Free Report) Google Cloud. The partnership will help Intel integrate generative AI and cloud technologies across its global operations to support innovation and business growth. Under the agreement, Intel will deploy Gemini Enterprise across its workforce, enabling employees to automate tasks and enhance workflows across engineering, supply chain and corporate operations. Through this collaboration, Intel aims to strengthen its position in AI-driven enterprise and semiconductor innovation. These are likely to have generated more customer interest, translating into incremental revenues in the quarter.
During the to-be-reported quarter, Intel expanded its AI infrastructure portfolio with three new platforms designed to support agentic AI across data centers, enterprise systems and intelligent edge devices. The company introduced Diamond Rapids, Crescent Island and Wildcat Lake to address growing AI demands across data centers and intelligent devices. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry. These are likely to have generated additional revenues in the quarter.
However, Intel lagged NVIDIA Corporation (NVDA - Free Report) on the innovation front, with the latter’s H100 and Blackwell graphics processing units being a runaway success. An accelerated ramp-up of AI PCs is likely to have affected the short-term margins of Intel as it shifted production to its high-volume facility in Ireland, where wafer costs are typically higher. Margins are also expected to have been adversely impacted by higher charges related to non-core businesses, charges associated with unused capacity and an unfavorable product mix. Moreover, China's supposed move to replace U.S.-made chips with domestic alternatives could significantly affect Intel as it derives a significant portion of its revenues from the Asian country.
Price Performance
Over the past year, Intel has surged 119.9% compared with the industry’s growth of 15.7%, outperforming its peers, NVIDIA and Advanced Micro Devices, Inc. (AMD - Free Report) . While NVIDIA has gained 10.1%, AMD has soared 99% over this period.
One-Year INTC Stock Price Performance
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Intel appears to be relatively cheaper than the industry but above its mean. Going by the price/sales ratio, the company’s shares currently trade at 6.25 forward sales, lower than 7.30 for the industry but higher than the stock’s mean of 2.46.
Image Source: Zacks Investment Research
Investment Considerations
Intel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. By addressing the challenges of scalability, performance and interoperability, it is paving the way for widespread AI adoption across enterprises worldwide. Management is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Significant capital infusion to revive its lost glory is likely to spur growth. All these efforts appear to resonate well, as exhibited by an uptrend in the stock price performance and rising earnings estimates.
However, increasing competition from other established players and emerging China-based firms is likely to adversely impact INTC’s bottom line. China’s stonewalling efforts and push for technological autonomy could reshape the dynamics of the semiconductor industry and affect Intel’s performance to a large extent. Moreover, Intel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. This has affected its margins. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days.
End Note
Intel's strategy for open, scalable AI systems extends beyond hardware, encompassing software, frameworks and tools. By fostering a broad ecosystem of AI players, including equipment manufacturers, database providers and software developers, Intel aims to offer enterprises a diverse range of solutions that cater to their unique GenAI requirements. This collaborative approach not only promotes innovation but also enhances interoperability and compatibility, empowering enterprises to leverage existing ecosystem partners with confidence.
The stock has a long-term earnings growth expectation of 9% and a VGM Score of B. Riding on a robust earnings surprise history and favorable Zacks Rank, Intel appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.
View the Zacks #1 Rank List
Image: Bigstock
INTC Stock Before Q3 Earnings: Is It a Smart Buy or Risky Move?
Key Takeaways
Intel Corporation (INTC - Free Report) is scheduled to report third-quarter 2026 earnings after the closing bell on Oct. 29. The Zacks Consensus Estimate for sales and earnings is pegged at $16.44 billion and 39 cents per share, respectively. Over the past 60 days, earnings estimates for INTC have increased from $1.47 to $1.50 per share for 2026 and from $1.93 to $1.99 per share for 2027.
INTC Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise History
The leading semiconductor manufacturer delivered a stellar four-quarter earnings surprise of 1,296.9%, on average, beating estimates on each occasion. In the last reported quarter, the company’s earnings surprise was 100%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Intel for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intel currently has an ESP of +2.22% with a Zacks Rank #2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping the Quarterly Performance
In the third quarter, Intel expanded its multi-year collaboration with Alphabet Inc.'s (GOOGL - Free Report) Google Cloud. The partnership will help Intel integrate generative AI and cloud technologies across its global operations to support innovation and business growth. Under the agreement, Intel will deploy Gemini Enterprise across its workforce, enabling employees to automate tasks and enhance workflows across engineering, supply chain and corporate operations. Through this collaboration, Intel aims to strengthen its position in AI-driven enterprise and semiconductor innovation. These are likely to have generated more customer interest, translating into incremental revenues in the quarter.
During the to-be-reported quarter, Intel expanded its AI infrastructure portfolio with three new platforms designed to support agentic AI across data centers, enterprise systems and intelligent edge devices. The company introduced Diamond Rapids, Crescent Island and Wildcat Lake to address growing AI demands across data centers and intelligent devices. The company is emphasizing the diligent execution of operational goals to establish itself as a leading foundry. These are likely to have generated additional revenues in the quarter.
However, Intel lagged NVIDIA Corporation (NVDA - Free Report) on the innovation front, with the latter’s H100 and Blackwell graphics processing units being a runaway success. An accelerated ramp-up of AI PCs is likely to have affected the short-term margins of Intel as it shifted production to its high-volume facility in Ireland, where wafer costs are typically higher. Margins are also expected to have been adversely impacted by higher charges related to non-core businesses, charges associated with unused capacity and an unfavorable product mix. Moreover, China's supposed move to replace U.S.-made chips with domestic alternatives could significantly affect Intel as it derives a significant portion of its revenues from the Asian country.
Price Performance
Over the past year, Intel has surged 119.9% compared with the industry’s growth of 15.7%, outperforming its peers, NVIDIA and Advanced Micro Devices, Inc. (AMD - Free Report) . While NVIDIA has gained 10.1%, AMD has soared 99% over this period.
One-Year INTC Stock Price Performance
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Intel appears to be relatively cheaper than the industry but above its mean. Going by the price/sales ratio, the company’s shares currently trade at 6.25 forward sales, lower than 7.30 for the industry but higher than the stock’s mean of 2.46.
Image Source: Zacks Investment Research
Investment Considerations
Intel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. By addressing the challenges of scalability, performance and interoperability, it is paving the way for widespread AI adoption across enterprises worldwide. Management is focusing on simplifying parts of its portfolio to unlock efficiencies and create value. Significant capital infusion to revive its lost glory is likely to spur growth. All these efforts appear to resonate well, as exhibited by an uptrend in the stock price performance and rising earnings estimates.
However, increasing competition from other established players and emerging China-based firms is likely to adversely impact INTC’s bottom line. China’s stonewalling efforts and push for technological autonomy could reshape the dynamics of the semiconductor industry and affect Intel’s performance to a large extent. Moreover, Intel has been facing challenges due to the disruptive rise of over-the-top service providers in this dynamic industry. This has affected its margins. Price-sensitive competition for customer retention in the core business is expected to intensify in the coming days.
End Note
Intel's strategy for open, scalable AI systems extends beyond hardware, encompassing software, frameworks and tools. By fostering a broad ecosystem of AI players, including equipment manufacturers, database providers and software developers, Intel aims to offer enterprises a diverse range of solutions that cater to their unique GenAI requirements. This collaborative approach not only promotes innovation but also enhances interoperability and compatibility, empowering enterprises to leverage existing ecosystem partners with confidence.
The stock has a long-term earnings growth expectation of 9% and a VGM Score of B. Riding on a robust earnings surprise history and favorable Zacks Rank, Intel appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.