Needham analyst N. Quinn Bolton reiterated a Hold rating and {REMOVEPT} price target on Intel (NASDAQ: INTC).

The analyst commented: "Intel reported a beat and raise, as all segments exceeded expectations, led by DCAI despite tight supply. Our key takeaways include: 1) DCAI continues to perform well, despite being constrained by wafer and substrate supply. ASIC revenue grew ~+20% Q/Q and nearly 300% Y/Y; 2) CY26 CapEx was raised to $20BN (from $18BN), and CY27 CapEx is expected to step up significantly from that level; 3) External foundry revenue grew +68% Q/Q. Management has now fully committed to a high-volume ramp of Intel 14A in 2028; and, 4) Client revenue performed better than expected, driven primarily by favorable mix and like-for-like price increases, and is expected to be flat Q/Q in 3Q26.

Despite the turnaround underway, we remain Hold rated as we believe Intel is losing share in DC CPUs, the company is not competitive in AI accelerators and valuation is rich."

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Shares of Intel closed at $100.23 yesterday.