Intel (INTC) shares are up about 180% over the past year as of Oct. 12, driven by demand for AI chips. The article cites three reasons: Intel has beaten its own financial expectations for seven straight quarters; Q2 revenue rose 25% to $16.1 billion, non-GAAP gross margin reached 41.8%, and adjusted EPS of $0.42 more than doubled the $0.20 guidance; and data-center and AI sales grew 59% to $6.3 billion. Demand for CPUs used in AI continues to outrun supply, and analysts expect revenue to grow 21% to $78 billion in 2027. Intel Foundry's Q2 operating loss narrowed to $2.1 billion, $348 million better than Q1, while the 18A process is in high-volume production and management targets breakeven by the end of 2027 or into 2028. The stock trades at a forward P/E of 67 on 2026 estimates and 49 on 2027 estimates.
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