Should You Buy Intel Stock Before July 23?

Semiconductor stocks have been in roaring form on the market in 2026, and Intel (NASDAQ: INTC) has been one of the brightest stars in this sector.

Intel stock has shot up by a remarkable 180% this year, as of this writing, well above the 67% gains clocked by the PHLX Semiconductor Sector index. The chip giant is set to release its second-quarter results after the market closes on July 23. Investors may be wondering whether it makes sense to buy Intel ahead of its quarterly report in anticipation of further upside.

After all, the stock has nearly tripled in 2026 and now trades at a massive premium following its stunning surge. Let's take a closer look at Intel's catalysts and valuation to check if this high-flying growth stock is worth buying, or even holding on to, before July 23.

Image source: Intel.

Intel stock is expensive, but that's half the story

Intel trades at a whopping 904 times trailing earnings. The iShares Semiconductor ETF, an exchange-traded fund that invests in semiconductor companies, has a significantly lower price-to-earnings ratio of 74. However, it is worth noting that Intel's forward earnings multiple of 137 is significantly lower than the trailing multiple, suggesting that a big bottom-line spike is in the cards.

The company anticipates Q2 non-GAAP earnings per share of $0.20 on revenue of $14.3 billion at the midpoint of its guidance range. Intel's revenue will grow nearly 11% year over year, based on its guidance. Also, the company posted a non-GAAP loss per share of $0.10 in the year-ago period. This massive turnaround in Intel's bottom line explains the stock's red-hot rally.

Importantly, analysts anticipate a 161% surge in Intel's earnings per share in 2026 to $1.09. The forecast for 2027 points toward a 40%-plus increase in earnings, while the 2028 projection suggests that Intel's earnings growth will accelerate.

Data by YCharts

What should investors do?

Growth-oriented investors can still consider buying Intel stock. The demand for custom processors and server central processing units (CPUs) in artificial intelligence (AI) data centers is increasing at a nice clip, primarily due to the growing adoption of agentic AI and inference workloads. Specifically, a server rack handling agentic AI applications needs one CPU per graphics processing unit (GPU).

For comparison, only one CPU is needed for four to eight GPUs in an AI server that handles training workloads. This favorable CPU to GPU ratio is driving up server CPU prices, as demand is outpacing supply. So, there is a solid chance of Intel's earnings growing at a significantly faster pace than analysts' expectations when it releases its results, and that could give the stock's tremendous rally another boost this month.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.