Intel Stock Jumps 4% Ahead of Q1 Earnings on AI Partnerships and Turnaround Momentum

SANTA CLARA, Calif. — Intel Corp. shares surged more than 4% in midday trading Thursday, climbing to around $67.88 as investors positioned for the chipmaker’s first-quarter 2026 earnings report after the bell and cheered the company’s string of high-profile AI infrastructure wins.

The stock (NASDAQ: INTC) opened higher and hit intraday highs near $68.28, extending a remarkable rally that has seen shares soar roughly 75-85% year-to-date in 2026. Volume was elevated as Wall Street anticipates results that could validate Intel’s resurgence under new leadership and its expanding role in the artificial intelligence boom.

Intel is scheduled to release Q1 results after markets close Thursday, followed by a conference call at 2 p.m. PT. Analysts expect revenue around $12.3-$12.4 billion and a small per-share loss near $0.11, though the company has a strong history of beating estimates. Focus will center on forward guidance, progress with the 18A manufacturing node and data-center momentum.

Recent catalysts have electrified investors. Intel deepened its partnership with Google, announcing a multiyear collaboration to power next-generation AI and cloud infrastructure using multiple generations of Xeon processors, including Xeon 6 chips for training and inference workloads. The deal underscores CPUs’ continued relevance in heterogeneous AI systems and provides a major endorsement from one of the world’s largest cloud providers.

The Google tie-up follows Intel’s announcement joining Elon Musk’s ambitious Terafab project alongside Tesla, SpaceX and xAI. The initiative aims to build massive AI compute capacity, with Intel serving as a key foundry partner using its advanced process technology. That news, combined with the $14.2 billion repurchase of a 49% stake in its Ireland Fab 34 from Apollo Global Management, signaled strong confidence in Intel’s manufacturing roadmap and balance sheet.

CEO Lip-Bu Tan, who took the helm in 2025, has accelerated Intel’s turnaround. The company is ramping its Intel 18A node — now in high-volume manufacturing — and positioning itself as a viable alternative to TSMC for external foundry customers. Analysts note improving yields and strong demand signals for Panther Lake processors and custom ASICs.

Intel’s foundry ambitions gained credibility with these deals. The Terafab partnership alone could represent billions in long-term revenue, while the Google expansion bolsters data-center prospects at a time when AI infrastructure spending remains robust. Shares have posted multiple double-digit gain days in April, adding over $100 billion in market value during one of the strongest short-term runs in company history.

Wall Street has responded with upgraded price targets. Northland raised its target to $92, Stifel to $65, and others have followed amid growing optimism. Consensus remains a Hold with an average around $50-$60, though several firms now see upside to $80-plus if execution continues. The stock trades at elevated multiples, reflecting expectations of a multi-year recovery.

Challenges persist. Intel still faces losses in its foundry segment, competition from AMD and Nvidia in key markets, and high capital expenditures. Q1 guidance from earlier periods pointed to revenue in the $11.7-$12.7 billion range. Investors will scrutinize any updates on cost discipline, AI accelerator traction and PC market recovery.

Broader semiconductor sentiment remains positive. TSMC’s strong results earlier highlighted AI demand tailwinds, lifting peers including Intel. The company’s emphasis on U.S.-based manufacturing also aligns with CHIPS Act support and national security priorities.

Intel launched its Core Series 3 processors in mid-April, targeting value computing, commercial and edge devices. The timing bolsters its client computing segment while data-center and AI efforts take center stage.

Financially, Intel maintains a solid foundation despite recent losses. The company continues investing heavily in fabs across Arizona, Oregon and Ireland. Free cash flow trends and debt management will feature in the earnings discussion. Shareholder returns, including dividends, provide some support.

Analysts expect another earnings beat based on historical patterns, with Zacks noting a positive Earnings ESP. However, the bar is high after the stock’s rapid ascent. Options imply an 11-12% post-earnings move, higher than average.

Longer term, Intel’s story revolves around foundry success and AI CPU/IPU relevance. Success with 18A could attract more external customers, reducing reliance on internal sales. Partnerships with hyperscalers like Google validate the strategy.

The stock’s 52-week range spans from under $19 to above $70. Thursday’s gains push it toward recent highs, reflecting renewed belief in CEO Tan’s vision. Market watchers describe the rally as one of the most dramatic in recent semiconductor history.

As trading continued Thursday morning, INTC held strong gains while broader markets showed mixed sentiment. Peers like AMD also advanced on AI optimism. The upcoming earnings will test whether fundamentals can sustain the valuation expansion.

Intel remains a cornerstone of American chip manufacturing. Its ability to compete in AI infrastructure while revitalizing client and foundry businesses positions it at a pivotal moment. Investors betting on the turnaround have been richly rewarded in 2026, but execution in the coming quarters will determine if the momentum endures.

Thursday’s pre-earnings pop highlights market enthusiasm for Intel’s strategic shifts. Whether the report delivers on guidance and AI progress could set the tone for the stock through the rest of the year. For now, the chip giant is riding a powerful wave of optimism fueled by major partnerships and manufacturing progress.