Should You Buy Intel Stock as Its Foundry Turnaround Takes Shape?
Key PointsIntel's stock has risen more than 220% so far in 2026.
Intel's stock has seen a remarkable surge, with shares climbing more than 220% in 2026. This rise is attributed to a combination of soaring demand for Intel's CPUs and growing confidence in the company's foundry business. Despite this impressive performance, astute investors might still find value in purchasing Intel's stock.
The company's second quarter was among its strongest in recent years. Revenue increased by 25% year over year, reaching over $16 billion. Moreover, Intel's gross margin expanded significantly, climbing to 40.4% from 27.5%. However, the most noteworthy development lies within Intel's foundry division and the turnaround occurring there.
In the quarter, Intel Foundry generated nearly $6 billion in revenue, surpassing their target by 25%. While the segment reported a $2.1 billion loss, this gap is gradually shrinking. A crucial factor for Intel's foundry turnaround is securing more business from external customers. Currently, external customer revenue accounts for only $293 million, indicating that Intel must attract more clients to significantly boost its foundry division's performance.
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