Intel reported second-quarter revenue of $16.1 billion, exceeding Wall Street estimates of $14.4 billion by about $1.8 billion, while earnings per share came in at $0.42, double the consensus estimate of $0.21.

The chipmaker’s revenue increased 25.2% year over year, marking Intel’s fastest top-line growth in more than 15 years. Intel shares were trading at $89.57 at the time of reporting, up 346% over the past year but below recent highs.

Intel Corp., INTC

The Client segment was the largest contributor, generating $8.9 billion in revenue, about $900 million above consensus. The gain was driven by higher average selling prices. The Datacenter segment reported $6.3 billion in revenue, also ahead of the Street estimate of $5.5 billion, as demand was described as materially exceeding supply.

The segment mix matters because Intel’s Client business remains a major revenue base, while data center demand is closely watched across the semiconductor industry as customers continue to prioritize compute capacity. The company’s ability to convert demand into revenue is also tied to supply availability, which analysts highlighted in their post-earnings updates.

Gross margin reached 41.8%, compared with the consensus estimate of 39.2%.

Analyst Price Targets Move Higher

Several research firms adjusted their price targets following the results. Bernstein raised its target to $110 from $100 and maintained a Market Perform rating. Truist increased its target to $108, while DA Davidson moved its target to $100. Baird set the highest target at $125, citing tight supply and potential upside in data center revenue.

TD Cowen kept its $115 target, pointing to strong demand and improved output while also flagging possible margin pressure ahead. Stifel lowered its target slightly to $110 on valuation grounds despite the strong quarterly results.

The average analyst price target across Wall Street now stands at $107.67. The ratings breakdown includes two Strong Buys, fifteen Buys, twenty-nine Holds, and three Sells. The spread in ratings and targets underscores that analysts are weighing stronger near-term operating performance against valuation and margin considerations.

According to InvestingPro data, 29 analysts have revised earnings estimates upward for the next period. InvestingPro’s Fair Value model, however, identifies the stock as potentially overvalued at current levels.

Institutional Interest Picks Up

Van Diest Capital LLC opened a new position during the first quarter, acquiring 6,562 shares valued at roughly $290,000. Institutional investors and hedge funds collectively hold 64.53% of Intel’s outstanding stock, with several smaller firms also adding new positions in recent quarters.

On the insider side, Executive Vice President April Miller Boise sold 40,256 shares on May 1 at an average price of $99.53, reducing her position by 27.7%.

Intel opened at $92.32 on Monday. The stock’s 12-month low is $18.97, while its 12-month high is $142.35. The 50-day moving average stands at $115.84.

For the third quarter, Intel has guided for EPS of $0.38. Full-year sell-side consensus is $0.65 EPS. Investors will be watching whether Intel can sustain above-consensus revenue while managing the margin pressure flagged by some analysts.