Is Intel Stock a Buy After Its Latest Earnings Report?

Intel reported second-quarter 2026 adjusted earnings of $0.42 per share—double Wall Street expectations—on revenue of $16.1 billion, beating estimates by nearly $1.7 billion. The company attributed the beat to surging AI infrastructure demand.

Despite the blowout quarter, shares fell 33% over the past month. The sell-off centered on Intel's raised capital expenditure guidance: $20 billion for 2026, with management signaling 2027 capex will climb significantly higher. Investors are also pricing in potential shareholder dilution tied to the increased spending.

The stock now trades at 59 times forward earnings, a premium valuation that leaves little room for execution missteps. Intel's upside hinges on sustained AI demand to justify the elevated multiple and heavy capital outlays.