NEW YORK, July 18, 2026, 17:10 EDT — With U.S. markets shut, attention turned to Intel NASDAQ:INTC after its stock fell 13% over the week, putting a spotlight on the company’s second-quarter margins.
- Intel shares ended Friday at $95.04, falling 2.0% on the day and recording a 13.3% decline across five sessions.
- Initial analyst projections indicate revenue of about $14.4 billion and adjusted EPS in the range of $0.21 to $0.22.
- The revenue projection is just 0.8% higher than Intel’s midpoint guidance.
Intel Corporation NASDAQ:INTC closed Friday at $95.04, slipping 2.0%. The shares fell 13.3% across five sessions ahead of its July 23 earnings report.
Margin strength is the core measure for major investors. Early revenue figures are around $14.4 billion, just edging past Intel’s guidance midpoint of $14.3 billion.
Intel shares remain up 151.6% so far this year. A quarter that simply meets expectations may not sustain those gains. The standard is high.
Intel’s valuation continues to lag behind major chip rivals, with its shares also posting a larger decline last week.
| Company | Friday close | Five-day move | 2026 move | Market cap/FY sales |
|---|---|---|---|---|
| Intel Corporation NASDAQ:INTC | $95.04 | -13.3% | +151.6% | 9.2x |
| Advanced Micro Devices Inc. NASDAQ:AMD | $495.76 | -8.9% | +126.5% | 23.6x |
| NVIDIA Corp. NASDAQ:NVDA | $202.81 | +0.4% | +6.8% | 23.2x |
| Taiwan Semiconductor Manufacturing Co. NYSE:TSM | $398.37 | -9.2% | +27.7% | 16.2x |
Estimated equity market value divided by most recent full-year revenue.
Intel shares trade at roughly 9.2 times their full-year sales, which is nearly 40% of the valuation multiples of AMD or Nvidia. Intel also reported a net loss for the full year. Its lagging performance this week reflects continued concerns over execution.
Chip sector sentiment weakened significantly. The Philadelphia semiconductor index closed down 20.2% from its June 22 peak. “It’s like the market has chip fatigue,” Carson Group strategist Ryan Detrick said. Reuters
Intel’s first-quarter results highlighted potential sources of strength. Revenue from Data Center and AI increased 22% to $5.1 billion, while Client Computing grew 1% to $7.7 billion.
Adjusted gross margin stood at 41.0% during the quarter. Intel projected a decrease to 39.0% for the second quarter. The two-percentage-point decline raises questions about factory expenses and product mix.
The company projected adjusted EPS at $0.20, while early estimates range from $0.21 to $0.22. Revenue figures on their own may not resolve the discussion.
Chief Executive Lip-Bu Tan stated that AI is “significantly increasing the need for Intel’s CPUs.” Thursday’s report is expected to demonstrate how much of that demand translates to profit. Intel Corporation
Intel and Google Cloud, part of Alphabet Inc. NASDAQ:GOOGL, on Thursday broadened their ongoing AI partnership. The companies did not disclose any revenue or cost-saving targets and did not provide immediate financial guidance.
Alphabet will report results on Wednesday, July 22, ahead of Intel’s earnings on Thursday. Alphabet’s guidance on artificial intelligence spending may be the initial driver for chip stocks. Intel’s conference call begins at 17:00 EDT.
Revenue is the initial test. Gross margin and guidance for the third quarter may prove to be tougher challenges. A clearer trajectory for margins could help reduce Intel’s valuation discount.
Risks persist. Soft demand for PCs, issues with foundry yields and increased manufacturing expenses may pressure margins. Reduced AI investment or an escalation in Middle East tensions could heighten losses across the sector.
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