SOFTBANK GRP UNSP/ADR

Intel INTC) stole the show in this week’s earnings lineup, which also included Q1 results from Tesla TSLA), Lockheed Martin LMT) and other prominent leaders in their respective industries.
However, Intel delivered big on its promising turnaround, which has been spurred by investments from the U.S. government, Nvidia NVDA), and Softbank SFTBY).
The comeback story has also centered around a perfect alignment of market forces and internal execution, with Intel reestablishing itself as a major competitive force in the AI-driven semiconductor landscape.
Delivering a strong Q1 report yesterday evening, Intel’s stock surged 23% in Friday’s trading session and is now sitting on monstrous gains of +300% in the last year.
Image Source: Zacks Investment Research
Demand for CPUs Propels Intel
Intel is benefiting from a major shift in AI workloads toward inference and agentic computing, which rely heavily on central processing units (CPUs) rather than on graphics processing units (GPUs).
CPUs have historically been Intel's core focus as a chipmaker and are considered the brains of computers, executing instructions, performing calculations, and managing data flow to run programs and operating systems.
Keeping this in mind, Intel’s Data Center & AI revenue jumped 22% year over year to $5.1 billion, lifting Q1 sales 7% to $13.57 billion and comfortably eclipsing estimates of $12.33 billion by 10%
Image Source: Zacks Investment Research
More importantly, has been Intel’s return to profitability, posting two straight profitable quarters with Q1 GAAP net income at $760 million. On an adjusted basis, this translated into Q1 EPS of $0.29, crushing expectations of $0.01 and rising from $0.13 per share a year ago.
Image Source: Zacks Investment Research
Intel’s Positive Guidance
Adding fuel to the rally was Intel’s near-term outlook, forecasting Q2 sales at $13.8-$14.8 billion and well ahead of Wall Street's expectations of $12.95 billion or nearly 1% growth.
Even better, Intel expects current quarter adjusted EPS to be $0.20, blowing away consensus expectations of $0.07 and reflecting a sharper rebound from an adjusted loss of -$0.10 a share in Q2 2025.
Conclusion & Final Thoughts
Intel is certainly riding the AI wave, and the growing need for CPUs as it relates to AI inferencing and agentic computing is guiding its return to prominence. Optimistically, Intel CEO Lip-Bu Tan has emphasized that CPUs are becoming the “indispensable foundation of the AI era.”
More reassuring in regards to the incredible rebound in Intel’s stock being sustainable is that the chipmaker is positioned for multiple expansions, both strategically and financially, based on its current transformation and market trajectory.
For now, Intel stock lands a Zacks Rank #3 (Hold), but it wouldn't be surprising if a buy rating is on the way with FY26 and FY27 EPS estimates likely to trend higher following its strong Q1 results and positive guidance.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Does Intel's Post Q1 Surge Signal a Turnaround Worth Buying Into?

Key Points
Utility companies generate reliable revenue.
Sales growth can be constrained because of regulated rate structures.
Data centers can offer new revenue sources.
Utility stocks have mostly been viewed as safe, boring, reliable cash generators that offer portfolio protection during times of uncertainty. The trade-off for that reliability has been that, typically having regulated rate structures, utility companies need approval to increase prices, constraining revenue growth.
A shift is underway, however, as a new revenue catalyst is emerging, driven by the increasing energy and resource demands of data centers. That new revenue source for many utility providers could not only unlock stock price appreciation as more investors see sales increasing, but also allow companies to keep their dividend payouts intact and even grow them for years to come.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The companies to consider investing in for this shift include American Electric Power (NASDAQ: AEP), American Water Works (NYSE: AWK), and Black Hills (NYSE: BKH).
American Electric Power
American Electric Power does what its name says, generating electricity for over 5 million customers across 11 states. It's that type of reach that helps create consistent cash flow, and the company is spending $72 billion on infrastructure over five years to keep supporting its operations.
The $72 billion is indeed a significant amount. Still, with Fortune Business Insights forecasting the global data center market will climb from around $300 billion in 2026 to roughly $699 billion by 2034, American Electric is positioning itself now to be a major player for the future. The company is partnering with the U.S. Department of Energy and SB Energy, a SoftBank Group subsidiary, to support a data center in Ohio.
For income generation, American Electric has paid a dividend each year since 1910, and it has offered consistent, consecutive dividend increases. Its payout is respectable, currently yielding around 2.8%.
American Water Works
American Water Works was founded in 1886 and provides water and wastewater services across multiple states. That's an essential business in and of itself, but the company also has a new revenue catalyst thanks to data center demand. In addition to being power-hungry, data centers also need cooling and water treatment solutions.
American Water Works can meet that demand with its proposed merger with Essential Utilities. Essential is an investor in a data center facility in Pennsylvania, and it will provide water services to both the power plant and data center involved in the project.
As a bonus, Essential Utilities also provides natural gas services. Through a subsidiary, Essential will engage in gas consulting and other services to the project mentioned above.
American Waterworks has a dividend payout that is yielding 2.5%, and when it combines with Essential Utilities, the new entity is expected to follow American Water's growth targets for dividend payouts.
Black Hills
Black Hills operates natural gas and electricity segments, with over 1.3 million customers across eight states. It tapped into the data center boom early, partnering with Meta Platforms in 2014 to power a data center in Wyoming. On April 14, Microsoft also announced a utility partnership with Black Hills.
It also may soon have even more utility resources, thanks to a planned merger with NorthWestern Energy Group, which provides natural gas and electricity services to over 850,000 customers.
If the merger is approved, the combined entity will be named Bright Horizon Energy, and it is expected to continue to pay dividends. That payout currently yields 3.7%, the largest yield of the three companies highlighted above.
Should you buy stock in American Electric Power right now?
Before you buy stock in American Electric Power, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Electric Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $524,786!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,236,406!*
Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 19, 2026.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I'd Buy More of These 3 Dividend Stocks Before the Market Figures Out What It's Missing

Soaring nearly 70% this year, Intel INTC) stock has been on a tear thanks to a wave of positive catalysts, including AI-related partnerships, major outside investments, improving earnings, and renewed confidence in its foundry strategy.
Trading near its highest levels since 2021, Intel stock has continued a remarkable turnaround after years of structural, competitive, and financial setbacks.
While Nvidia’s NVDA) GPU dominance was anticipated, Intel also fell behind rivals like AMD AMD) and Taiwan Semiconductor TSM) in both chip design and manufacturing technology.
Eyeing a return to prominence, Intel stock has now soared more than 200% in the last year, hitting a new 52-week and multi-year high of $65 a share this week.
This certainly makes it a worthy topic of whether the rally in INTC has gone too far or if the momentum is just beginning.
Image Source: Zacks Investment Research
Terafab Partnership & Foundry Resurgence
Adding fuel to the latest rally is that Intel recently announced a high-profile partnership with Elon Musk’s Terafab chip-making venture, which investors see as a major validation of Intel’s foundry ambitions.
Terafab is Elon Musk’s ambitious plan to build a vertically integrated semiconductor mega facility capable of producing 1 terawatt of AI compute per year, an unprecedented scale.
Last week, Intel announced that it would join Terafab as the primary foundry partner, providing the manufacturing technology needed to build AI chips. The major semiconductor initiative is led by Musk’s companies, Tesla TSLA), SpaceX, and xAI.
Forbes reported that Intel will contribute its 18A process node, advanced packaging, and high-volume manufacturing capabilities.
Other reports have indicated that Intel is also in discussions with Amazon AMZN) and Alphabet GOOGL) about advanced chip-packaging services, another potential boost to its manufacturing business as it looks to regain market share from Taiwan Semiconductor.
Nvidia, SoftBank, & Government Endorsements
At the center of Intel’s turnaround has been investments from Nvidia, SoftBank SFTBY), and the Trump administration.
Nvidia has invested $5 billion in Intel, with SoftBank adding $2 billion, and the U.S. government took a 10% stake worth $8.9 billion, a rare and aggressive show of support for domestic chipmaking.
These investments have signaled confidence in Intel’s turnaround strategy and strategic importance to the semiconductor industry, while alleviating the financial stress the company was previously facing.
Just as advantageous for Intel is that it has formed a strategic partnership with Nvidia, representing one of the biggest realignments in the semiconductor industry in decades.
The deep technical integration effectively merges Intel’s CPU (central processing unit) leadership with Nvidia’s GPU (graphics processing unit) leadership, while ending years of rivalry in which Nvidia had the upper hand.
Notably, Intel is designing and building custom CPUs for Nvidia’s AI data-center platforms, with their collaboration extending to next-generation PCs as well.
Intel’s Improved Balance Sheet
With confidence restored in Intel’s ability to fund its operations, it’s noteworthy that the company is now sitting on a multi-year peak in cash & equivalents at over $37 billion. Plus, Intel’s balance sheet includes $211.42 billion in total assets, which is nicely above its total liabilities of $85 billion.
Image Source: Zacks Investment Research
Tracking Intel’s Return to Probability
The pinnacle of Intel’s turnaround came when it posted its first profit after six consecutive quarterly losses (GAAP basis) in Q3 2025.
Net income for Q3 2025 came in at $4.1 billion or adjusted EPS of $0.23, impressively beating Wall Street's expectations of $0.01.
Intel reported a GAAP net loss of $600,000 in Q4 2025, although non-GAAP net income came in at $800,000 or $0.15 per share and ahead of EPS expectations of $0.08. Overall, Intel reported a net loss of $267,000 in 2025, or -$0.06 a share on a GAAP basis and $0.42 in regard to adjusted EPS (Non-GAAP).
Furthermore, Intel is expected to post a GAAP profit this year, but this is heavily dependent on margin improvement and lower one-time charges, with the company set to report Q1 2026 results on Thursday, April 23.
Reassuringly, Intel’s top-line recovery has been supportive of its expected return to profitability, with annual sales projections moving further past $50 billion, although this is still well away from a peak of $79 billion in 2021.
Bottom Line
Intel’s surge has been driven by a mix of improving financial fundamentals, strategic positioning (AI and foundry), and macro tailwinds (policy support). Demand for data-center CPUs and AI-related chips continues to exceed supply, strengthening Intel’s near-term outlook.
For now, Intel stock lands a Zacks Rank #3 (Hold) after such an exhilarating rally that could likely continue if analysts start to readjust earnings estimates higher following the announcement of its collaboration with Terafab.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Has Intel's Rally Gone Too Far, or Is the Momentum Just Beginning?

Key Points
Chip architect Arm Holdings created the blueprints for many of the world's most widely-used semiconductors.
While Arm has historically generated revenue from licensing and royalties on its chip designs, the company is venturing into the realm of chipmaking for the first time with the debut of its Arm AGI CPU.
The company released an ambitious forecast that would mark a significant ramp of its sales and profits, which -- in turn -- would supercharge its stock price.
The past few years have been a rollercoaster ride for Arm Holdings (NASDAQ: ARM). In late 2020, Nvidia unveiled plans to acquire the chip designer from SoftBank Group for a head-turning $40 billion. The joy in tech land didn't last: The deal was called off in early 2022 when the U.S. Federal Trade Commission (FTC) sued to block the marriage. Arm consoled itself by announcing its initial public offering (IPO), and the stock began trading on Sept. 14, 2023.
Since its public debut, Arm stock has gained more than 200%, far outpacing the 45% gains of the S&P 500 during the same period.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
As impressive as that is, Arm has audacious growth plans that could push the stock up another 300% over the next five years.
A little background
Arm doesn't have the name recognition of many of its chipmaking peers, but the company reaches into every corner of the tech world. In a regulatory filing, Arm noted that "We architect, develop, and license high-performance, low-cost, and energy-efficient CPU products and related technology." The company goes on to say that its CPUs are found in 99% of the world's smartphones and power the vast majority of the world's software.
That isn't hyperbole. Nvidia, Apple, Amazon, Alphabet, Microsoft, Qualcomm, and Advanced Micro Devices all have Arm's chip designs at the heart of their products. In all, more than 350 billion ARM-based chips have shipped to date, and the company is only just getting started.
Arm has historically made money by collecting license fees and royalties on its cutting-edge semiconductor designs, a strategy that has been extremely lucrative. In its fiscal 2026 third quarter (ended Dec. 31), Arm generated revenue of $1.2 billion, up 26% year over year, resulting in a gross margin exceeding 97%. The company spent heavily on research and development (R&D) (more on that in a minute), so its adjusted earnings per share (EPS) of $0.43 climbed just 10%.
However, Arm just made a game-changing announcement that it says will drive its revenue up more than fivefold and send its profits to the next level.
The five-year plan
Arm's heavy R&D spending yielded big results. The company recently announced the development of its physical silicon for the first time, with the debut of the Arm AGI CPU, a chip it designed specifically for running AI in the data center. The chip boasts 64 CPUs at its heart, armed with 8,700 cores, and "ruthlessly optimized" for AI.
The company already has some of the biggest names in tech lining up to buy its inaugural chip, including Meta Platforms, Cloudflare, SAP, and OpenAI, among others.
Management has run the numbers and expects sales of the Arm AGI CPU to soar in the coming years, generating $15 billion in annual revenue by fiscal 2031 (which ends in May 2031). What's more, the company is forecasting total revenue of $25 billion for the year, which should drive EPS to $9. That would increase the top and bottom line by more than 5x in as many years.
Arm Holdings currently has a stock price of roughly $157 (as of this writing) and a price-to-earnings ratio of 206, though the stock is trading for 73 times next year's expected earnings. If management can achieve the company's lofty goal of generating earnings per share of $9 in fiscal 2031 -- and applying the more conservative multiple of 73 times -- the stock price would soar to $657, an increase of 318%.
It's also important to point out that even minor changes to any of the variables in this equation would change the outlook, so it's only fun with numbers.
Is it doable?
What investors really want to know is whether Arm's outlook is realistic or just pie-in-the-sky thinking. Breaking the forecast down into its parts provides context. Arm is expected to generate revenue of nearly $5 billion for fiscal 2026 (which ends March 31), so it would only take annualized growth of 15% in its legacy business to reach $10 billion over five years. So far, so good.
The big question is whether Arm can generate $15 billion in annual sales from its new Arm AGI AI chip. Management said it already has a clear "line of sight" to over $1 billion in demand for its inaugural offering, with more on the way.
Moreover, executives said, "the chip business is targeting customers who either don't have the internal resources or don't have the desire to develop their own chips." In that case, it wouldn't cannibalize Arm's highly profitable licensing and royalties business. Furthermore, rumors suggest the company has other home-grown chips on the drawing board, which would make the $15 billion target much more reasonable. Only time will tell.
While Arm has its work cut out for it, the plan certainly has its merits. Assuming management's estimates are correct, the stock is currently selling for about 17 times estimated 2031 earnings. Looking back five years from now, that might seem like a bargain -- particularly if Arm's chipmaking business expands.
I think there's a strong argument that buying a small stake in Arm could give your portfolio a shot in the arm in years to come.
Should you buy stock in Arm Holdings right now?
Before you buy stock in Arm Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arm Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $503,861!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,026,987!*
Now, it’s worth noting Stock Advisor’s total average return is 884% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 29, 2026.
Danny Vena, CPA has positions in Alphabet, Amazon, Apple, Cloudflare, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Cloudflare, Meta Platforms, Microsoft, Nvidia, and Qualcomm and is short shares of Apple. The Motley Fool recommends SAP. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Supercharged Growth Stock to Buy Before It Soars 318%

Rising demand for Micron Technology, Inc.’s MU high-performance memory chips and Oracle Corporation’s ORCL cloud-based artificial intelligence (AI) databases supports growth. But Micron’s stronger profitability, lower financial risk, and less volatile partnerships may make it a slightly more attractive investment. Let’s look into the details.
Micron’s HBM Chip Demand Drives Growth
The demand for Micron’s cutting-edge high-bandwidth memory (HBM) chips continues to rise as AI hyperscalers and data center operators increase their spending on AI infrastructure. Consequently, the HBM chips are facing supply constraints, and this demand-supply imbalance is expected to bolster Micron’s pricing power, boost profit margins, and lift the stock price.
CEO of Micron, Sanjay Mehrotra, confirmed that strong demand for HBM chips amid limited supply is expected to drive growth. Management remains hopeful about Micron’s net income growth and forecasts fiscal second-quarter 2026 revenues between $18.3 billion and $19.1 billion, up from $13.64 billion in the fiscal first quarter of 2026, according to investors.micron.com.
Oracle’s Cloud and Database Strategy Fuels Growth
Oracle’s Remaining Performance Obligations jumped 438% year over year to $523 billion in the fiscal second quarter of 2026, showcasing strong future revenue commitments, driven in part by new agreements with Meta Platforms, Inc. META and NVIDIA Corporation NVDA, according to investor.oracle.com. This sharp increase reflects continued customer demand and ongoing capacity commitments on Oracle Cloud Infrastructure.
Also, Oracle’s business model is appealing to customers because it combines its own cloud platform with the ability to implement its core database technologies, including Oracle Exadata Database Service and Oracle Autonomous Database, into other cloud platforms like Google Cloud, Amazon Web Services and Microsoft Azure. This allows companies to use Oracle’s database tools directly within their chosen cloud environment, eliminating large-scale data transfer, saving time, reducing costs and improving overall performance.
Micron or Oracle? Here’s the AI Stock to Buy Now
No doubt, the strong demand and tight supply of HBM chips will drive Micron’s growth, enhance profitability and support its stock performance. Similarly, Oracle’s cloud services and embedded database services will drive growth and efficiency.
However, unlike Micron, Oracle faces challenges from its reliance on the unprofitable OpenAI for future revenue growth. The Stargate project with OpenAI and SoftBank Group Corp. SFTBY has stalled amid disagreements, and NVIDIA’s funding commitment to OpenAI is now lower than earlier expected.
Oracle, anyhow, has a debt-to-equity ratio of 328.3%, higher than Micron’s 19%, indicating higher financial risk and greater vulnerability to economic headwinds.
Image Source: Zacks Investment Research
In contrast, Micron has a net profit margin of 28.2%, more than Oracle’s 25.3%, indicating stronger profitability and growth potential, making Micron the more attractive buy at this time.
Image Source: Zacks Investment Research
Micron currently sports a Zacks Rank #1 (Strong Buy), while Oracle has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Micron vs. Oracle: One AI Stock Is a Clear Buy Right Now

(RTTNews) - SoftBank Corp. (9984.T) said, SAIMEMORY, its subsidiary based in Tokyo, has signed a collaborative agreement with Intel to advance the commercialization of Z-Angle Memory, a next-generation memory technology. By utilizing ZAM memory technology, SAIMEMORY and Intel will work together to enable high-capacity and high-bandwidth data processing, enhanced processing performance and reduced power consumption in data centers and other environments that require the training and inference of large-scale AI models.
SAIMEMORY will conduct research and development on memory architectures and manufacturing technologies with an aim to create prototypes in fiscal 2027, and achieve commercialization in fiscal 2029.
SoftBank is currently trading at 4,300 yen, up 5.13%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoftBank Unit, Intel Join To Advance Commercialization Of Z-Angle Memory For AI

Even though Intel INTC was once the world’s largest semiconductor company, the chip giant is on the cusp of an improbable turnaround.
Notably, Wall Street’s tone has flipped from “Intel is dying” to “Intel is back”.
Correlating with such, analyst upgrades and bullish commentary have piled up ahead of Intel’s Q4 results on Thursday, January 22.
This has pushed Intel stock to a two-year high of $50 a share, after trading at just $17 last April, its lowest point in over a decade.
Intel’s revival has been led by major investments from the U.S. government and even its long-time rival Nvidia NVDA, along with SoftBank SFTBY. Providing a lifeline, these investments and partnerships have helped stabilize Intel’s finances and validate its long-term strategy.
That said, the dramatic rebound in Intel stock is spurring the conversation of whether it’s time to buy into the latest rally, fade it, or hold INTC in the portfolio.
Image Source: Zacks Investment Research
Intel’s Q4 Expectations
Based on Zacks estimates, Intel’s Q4 sales are thought to have dipped 6% to $13.38 billion versus $14.26 billion in the prior year quarter. On the bottom line, Q4 EPS is expected to dip to $0.08 compared to $0.13 per share a year ago.
Despite the anticipated contraction, the excitement for Intel stock has been lifted by stronger-than-expected financial results. In its last four quarterly reports, Intel has posted an average sales surprise of 4.69% and a very impressive average earnings surprise of 577%. Intel most recently reported Q3 EPS of $0.23 in October, crushing expectations of $0.01.
After posting a $18.8 billion loss in 2024 or -$0.13 per share, Intel is expected to round out fiscal 2025 with EPS at $0.34 despite annual sales being projected to decline 1% to $52.56 billion.
Image Source: Zacks Investment Research
Key Drivers to Intel’s Rebound
1. Strong Product Momentum
Intel’s launch of its Panther Lake PC platform is being treated as its most important product in years. Analysts see it as a sign that Intel’s multi-year technology delays are finally ending.
Panther Lake is a next-generation mobile PC architecture that is capable of complex on-device AI workloads and is built on Intel’s 18A process, the company’s most advanced manufacturing node to date.
2. Foundry Progress
With nodes being the manufacturing technology that helps build chips, Intel’s 18A nodes are at the center of its comeback narrative.
Intel’s 18A yields have surpassed 60%, a major milestone for a leading-edge node.
18A is drawing potential external customers outside of Nvidia, including reports that Apple AAPL will use Intel Foundry to build chips starting in 2027.
Gaining Apple’s business would position Intel as a viable competitor to Taiwan Semiconductor TSM, which aligns with its goal of becoming the world’s second-largest circuit foundry provider by 2030.
3. Demand for Service CPUs
Intel is nearly sold out of server CPUs (Central Processing Units), a reversal from the oversupply issues that caused its stock to crash in 2023 and 2024.
Average selling prices for these CPUs could rise 10-15% due to demand outstripping supply for data center servers, with Intel seeing an increase in demand for consumer and laptop CPUs as well.
Analyst Upgrades
While Intel has blown past its current Average Zacks Price Target of $39.15, several analysts have recently upgraded their ratings and price tags for INTC.
This includes analysts at Citigroup, KeyBanc, TD Cowen, HSBC, and Seaport Research Partners. It’s noteworthy that Seaport has upgraded Intel stock from a hold to a strong buy, raising its price target for INTC to $65 on Tuesday. Seaport’s price tag would be the new street-high, with the firm citing PC recovery, manufacturing progress, and momentum in Intel’s foundry business.
Image Source: Zacks Investment Research
Monitoring Intel’s Valuation
The price-to-sales ratio (P/S) may still be the best way to track Intel's fundamental value to investors at the moment, rather than the P/E ratio. Keeping this in mind, INTC has drifted further above the often-preferred level of less than 2X forward sales, but is still beneath the S&P 500‘s 5.8X and the hefty P/S premiums that many chip producers can command.
Image Source: Zacks Investment Research
Regarding Intel’s earning potential, its multi-year EPS peak was $5.47 in 2021. At around $50 a share, an overly optimistic epiphany would value INTC at an attractive forward earnings multiple of less than 10X if it came near this pinnacle instead of current levels of 80X.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
Intel appears to be making good on the $11 billion investment from the federal government, its largest shareholder. The United States' plan to secure and boost domestic chip manufacturing has made it enticing to keep Intel stock in the portfolio.
However, better buying opportunities could be ahead after such an exhilarating rally unless the chipmaker has blowout Q4 results and issues very promising guidance. For now, Intel stock lands a Zacks Rank #3 (Hold).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Intel Stock Keep Soaring as Q4 Earnings Approach?

(RTTNews) - SoftBank Group Corp. (SFTBF, SFTBY, 9984.T), a Japanese investment holding company, on Wednesday said it has completed an additional $22.5 billion investment in OpenAI at the second closing on December 26.
The company completed the first closing in April 2025 with a $7.5 billion investment through SoftBank Vision Fund 2.
The second closing comprised a further $22.5 billion investment, also through SVF2.
The investment fully satisfies the company's previously announced commitment of up to $40 billion made on March 31.
Together with an oversubscribed and upsized $11 billion participation from third-party co-investors, the final aggregate commitment of $41 billion has now been fully funded.
Following the completion of the investment, the company's aggregate ownership interest in OpenAI stands at approximately 11%.
On Tuesday, SoftBank Group closed trading 1.90% lesser at JPY 4,400 on the Tokyo Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoftBank Completes $22.5 Bln Second Closing Investment In OpenAI; Ownership Rises To 11%

(RTTNews) - SoftBank Group Corp. (SFTBY, 9984.T), a major Japanese multinational investment holding company, on Monday announced that it has entered into a definitive agreement to acquire DigitalBridge Group, Inc. (DBRG), an alternative asset manager, for about $4 billion.
The transaction is expected to close in the second half of 2026.
Under the terms of the agreement, the company will indirectly acquire all outstanding DigitalBridge shares for $16 per share in cash.
The offer represents a 15% premium to DigitalBridge's December 26 closing price and a 50% premium to the unaffected 52-week average closing price as of December 4.
The company said the acquisition will strengthen its ability to build, scale and finance critical infrastructure required for next-generation AI services, including data centers, connectivity and edge infrastructure, supporting its long-term vision around Artificial Super Intelligence.
DigitalBridge will continue to operate as a separately managed platform following the transaction, led by Chief Executive Officer Marc Ganzi.
SoftBank Group closed trading 0.79% higher at JPY 4,485 on the Tokyo Stock Exchange.
In the pre-market trading, DigitalBridge Group is 10.12% higher at $15.34 on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoftBank To Acquire DigitalBridge To Enhance AI Services

(RTTNews) - According to Bloomberg News, SoftBank Group Corp. (SFTBY.PK) is in the advanced stages of discussions to acquire DigitalBridge Group, Inc. (DBRG), an alternative asset manager.
Following this report, shares of DigitalBridge climbed 33.38 percent, to $18.58 during trading before the bell. In the past one year, the stock has traded in the range of $6.41 to $15.55.
Citing unnamed sources, the report added that an acquisition deal between the two companies could be announced as soon as Monday.
The report comes as the major companies are competing to advance their artificial intelligence infrastructure, which has also prompted SoftBank's founder Masayoshi Son to capitalize in this sector.
With this acquisition, SoftBank could strengthen its portfolio related to assets tied to artificial intelligence, Reuters notes.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.