Is Intel Stock a Buy After Its Latest Earnings Report?

Intel (NASDAQ:INTC) precocious delivered blowout net results for the 2nd 4th of 2026.

Adjusted net per stock of $0.42 came successful treble what Wall Street analysts had been expecting, portion gross of $16.1 cardinal came successful astir $1.7 cardinal higher than statement estimates.

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"Strong request for our products proceed to outpace our increasing supply," Intel's CEO Lip-Bu Tan said connected the company's net call. "The surging request and accelerated build-out of compute infrastructure crossed the satellite creates a meaningful accidental for america successful our merchandise concern arsenic good arsenic our foundry business."

Intel besides provided beardown guidance for the existent quarter, estimating adjusted EPS of $0.38 and gross betwixt $15.8 cardinal and $16.8 billion. Both came successful higher than analysts had been modeling.

The affirmative news, however, has done small for Intel's stock, which is down astir 33% implicit the past month.

Is Intel a bargain aft its latest net report?

Image source: The Motley Fool.

High capex continues to plague AI stocks

While the top- and bottom-line numbers looked great, Intel besides raised its 2026 superior expenditure guidance to $20 billion, up astir $2 cardinal from anterior guidance.

Intel's CFO David Zinsner besides said it expects capex successful 2027 "to beryllium importantly supra the 2026 levels." Zinsner said Intel remains disciplined with capex and is spending lone successful areas wherever it sees bully semipermanent returns.

All artificial quality stocks that person raised their capex guides person travel nether pressure, arsenic investors question whether these monolithic investments tin output capable returns.

Some analysts are besides acrophobic that Intel volition beryllium forced to rise superior to money its spending ambitions.

"The imaginable of shareholder dilution and continued unit connected escaped currency travel are apt to measurement connected capitalist sentiment and headdress the stock's upside implicit the abbreviated to mean term," Hendi Susanto, a portfolio manager astatine Gabellie Funds, told Barrons.

However, immoderate analysts presumption the accrued capex guidance arsenic grounds that Intel volition beryllium capable to get much customers and spot request travel through.

Is the banal a buy?

Intel's beardown results successful the caller 4th person led to a large turnaround for the stock, which is up astir 128% this twelvemonth and astir 335% implicit the past year.