Needham Reiterates Hold on Intel

Needham analyst N. Quinn Bolton reiterated a Hold rating on Intel (NASDAQ: INTC).

“Intel reported a significant beat in 1Q26 with 2Q26 guidance also well above expectations. The beat and raise was primarily driven by CPU demand exceeding expectations despite tight supply.

Our key takeaways include: 1) Supply remains tight, and the company mentioned revenue could have been >$1bn higher if it had more supply; 2) Server CPU strength is expected to continue, management projects industry units to grow by a DD % this year with momentum continuing in 2027; 3) In foundry, Intel continues to make progress on 14A and expects to see early design commitments in 2H26/1H27; Finally, 4) GM in 1Q26 was aided by mix and better pricing, which is expected to continue in 2Q26.

While the company’s turnaround is clearly underway and server CPU demand is robust, we believe the shares fully reflect the company’s prospects. We remain Hold rated.”

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