Intel (INTC -3.20%) skyrocketed 278.4% in the first half of 2026, according to data from S&P Global Market Intelligence, as the semiconductor company posted better-than-expected results in the first quarter and expanded its partnerships with other tech companies.
Intel has been closely watched by many investors as a turnaround play, following years of falling behind its competitors. While Intel's shares have soared in the first half of this year, the stock has experienced some significant dips more recently.
Here's what's going well for Intel stock and why its shares could be volatile for the remainder of the year.
Image source: Intel.
Better-than-expected results built on past momentum
Intel shares were already gaining traction in early 2026, and they accelerated after the company reported better-than-expected first-quarter results.
Intel's revenue rose just 7% in the quarter to $13.6 billion, far better than the consensus estimate of $12.4 billion. The company's adjusted earnings of $0.29 per share were also well above Wall Street's consensus estimate of $0.01 per share.
Intel shareholders were also likely impressed to see the company's data center revenue increase 22% to $5.1 billion. Investors have closely watched this segment because CPUs are becoming increasingly important for AI data centers, because they're especially good at finding and processing data.
Adding to the optimism of the quarter was the fact that Intel's management issued better-than-expected guidance, with revenue of $14.3 billion and earnings of $0.20 per share -- far above Wall Street's average estimates of $13.1 billion and $0.09 per share.
If all that weren't enough, Intel's shares gained momentum as rumors surfaced that the company was in talks with Apple to produce chips for some of its devices. The initial reports proved true, and Intel will make some processors for Apple's Mac laptops and iPhones.
Getting that business from Apple comes after Intel has also inked deals with Tesla and SpaceX for its Terafab AI data center project.
NASDAQ: INTC
Key Data Points
The second-half of 2026 is off to a rough start
Intel's shares have fallen about 28% since the end of June as investors have become increasingly skeptical about some AI stocks. Intel, in particular, has come under scrutiny because its shares are very expensive.
Intel stock has a price-to-earnings (P/E) ratio of 904, compared to the average P/E ratio of 34 for the entire tech sector.
Shareholders will get more insight into how Intel is doing when the company reports its second-quarter results on July 23. While Intel is making progress with new partnerships, the company still has a lot to prove. If more investors begin to question Intel's share price premium, there could be more volatility ahead.
