Intel: The Comeback Is Real, But The Stock Has Already Moved

Intel Corporation delivered a standout Q2, with 25% YoY revenue growth to $16.1B and non-GAAP EPS of $0.42, surpassing expectations. Data Center and AI (DCAI) revenue surged 59% YoY to $6.3B, affirming INTC's credible participation in the AI infrastructure cycle. Non-GAAP gross margin improved to 41.8%, with Q3 guidance maintaining revenue and margin momentum, but capital intensity and foundry execution risks remain. I maintain a 'Hold' rating: the turnaround is real, but the stock’s sharp rally now prices in substantial recovery, demanding continued execution.

Intel Corporation (INTC) finally gave investors the kind of quarter they have been waiting for. After years of manufacturing setbacks, margin pressure, market-share questions and repeated turnaround promises, Q2 showed real evidence that demand's improving and execution is