RBC expects Intel to post roughly a 5% revenue beat, raise guidance, and deliver stronger gross margins in Thursday’s earnings report.
- RBC maintained its 'Sector Perform' rating and $80 price target on Intel’s stock.
- It cautioned that Intel's valuation already reflects much of the near-term optimism.
- Retail investors are watching Thursday's earnings report for updates on foundry progress, server demand, and the scope of the company's workforce reductions.
Intel (INTC) shares jumped in pre-market trading after RBC Capital said it expects the company to beat revenue expectations in its upcoming second-quarter (Q2) earnings report, even as the company is reportedly laying off employees in its data center division.
RBC Capital maintained its 'Sector Perform' rating and $80 price target on Intel ahead of Thursday's earnings release, according to a note cited by TheFly. The firm expects Intel to deliver roughly a 5% revenue beat, raise guidance by 3% to 5%, and report gross margins that come in 1 to 2 percentage points above expectations, supported by stronger demand.
INTC’s stock rose as much as 5.7% in pre-market trade, on track to climb back above $100.
RBC Sees Revenue Beat Ahead Of Intel Earnings
RBC identified Intel's server CPU business as a key source of strength, forecasting double-digit volume growth through the remainder of the year.
The brokerage expects second-quarter results to exceed consensus expectations but noted that much of the recent optimism may already be reflected in the share price. With Intel trading at more than 60 times forward earnings, RBC believes the near-term risk-reward profile remains balanced, particularly given that meaningful contributions from Intel's Foundry business are likely to take time.
Wall Street currently expects Intel to report earnings of about $0.22 per share on $14.45 billion in revenue for the June quarter, according to Koyfin data.
Intel’s Data Center Layoffs
Intel is also reportedly planning layoffs within its Data Center Group, with a company spokesperson providing on-record confirmation. "As part of our broader strategy to become a more focused and efficient company, our Data Center Group is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success," the spokesperson said.
Further details on the scale of the cuts are expected to be addressed during Thursday's earnings call.
How Is Retail Feeling About INTC’s Stock?
On Stocktwits, retail sentiment around Intel trended in ‘bullish’ territory over the past day. Platform data showed that chatter around the shares had more than doubled in the last 24 hours, and has jumped more than 500% over the past month.
Many retail traders anticipate that INTC’s stock will rally after Thursday’s report, with one stating that the shares have been “gathering steam” for a while now.
However, some noted that historically, Intel’s stock has dipped after its earnings report.
Wall Street Watches Server CPU Momentum
Intel's financial performance has steadily improved over the past year. Quarterly revenue increased from $12.67 billion in the first quarter of 2025 to $13.58 billion in the first quarter of 2026.
If consensus estimates are met, second-quarter revenue would reach $14.45 billion, representing year-over-year growth of about 12% and the company's strongest growth rate in roughly six quarters.
Intel remains one of the market's strongest-performing semiconductor stocks this year. The shares are up roughly 160% year-to-date and more than 320% over the past 12 months.
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