Intel (NASDAQ: INTC) has delivered stunning gains of 357% over the past year, cementing its status as one of the semiconductor sector’s most compelling turnaround stories.
The company’s fast-improving financial health and growing influence in artificial intelligence chips have driven that remarkable run for investors watching the stock closely.
Despite the longer-term momentum, Intel shares have pulled back 25% from the 52-week high reached on June 30, leaving some investors wondering whether the retreat presents an opportunity.
The company is scheduled to release its second-quarter 2026 earnings report after the market closes on July 23, and the setup heading into that report looks increasingly favorable.
A key catalyst has emerged from Taiwan Semiconductor Manufacturing (NYSE: TSM), whose recent Q2 earnings call shed important light on shifting dynamics inside AI data centers worldwide.
TSMC management noted on the call that the “emergence of agentic AI is leading to a resurgence in the role of CPUs in AI data centers,” a direct tailwind for Intel’s core server business.
Traditionally, AI data centers have leaned heavily on graphics processing units to handle demanding workloads such as training large language models, but that balance is now shifting.
CPUs handle complex multi-step tasks effectively and help reduce strain on GPUs, making them increasingly valuable in data centers running agentic AI applications.
Market research firm TrendForce estimates a 50-50 CPU-to-GPU split in agentic AI data centers, compared to the 1:4 to 1:8 ratio seen in large language model-focused facilities.
Intel is well-positioned to benefit from that shift, holding an estimated 54% share of the server CPU market according to Mercury Research, making it the dominant player in the space.
AMD has estimated the server CPU market could reach $120 billion in annual revenue by 2030, growing at a compound annual growth rate of more than 35% through the end of the decade.
Even holding a 50% share of that market would put Intel on track to generate $60 billion annually from server CPU sales, a dramatic step up from the $16.9 billion in data center and AI revenue the company recorded in 2025.
On the earnings front, analysts expect Intel to swing to earnings per share of $0.22 in Q2, compared to a loss of $0.10 per share in the year-ago period.
The consensus estimate sits only modestly ahead of Intel’s own guidance of $0.20 per share, leaving meaningful room for an upside surprise when results arrive.
Intel recently confirmed to tech-focused publication Tom’s Hardware that it is raising CPU prices due to tight supply, a move that could provide an additional boost to margins and help the company surpass analyst expectations.
