Summary

• Q1 2026 changed my perspective because Intel’s turnaround finally showed up in revenue, margins, earnings, guidance, and DCAI momentum.
• I see DCAI as the biggest surprise, with $5.1B of revenue, 22% growth, and $1.5B of operating profit.
• In fact, Xeon 6’s traction with Nvidia, Google, and SambaNova makes Intel’s AI relevance harder for me to dismiss.
• The company obliterated the Street's consensus on Q1 results and Q2 guidance. In other words, the supply constraints are actually accretive for earnings.
• That said, even though fundamentals improved, after the rally and valuation reset, I am trimming my position, and I reiterate my hold rating until the stock retests mid-$60s.

Over the last few quarters, I have gone back and forth on Intel (INTC) more than I expected. Late last year, I was bullish on the stock, and I was exposed to

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of INTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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