Is Intel Stock Heading to $150 in 2026?

In just four months this year, shares of Intel (NASDAQ: INTC) have shot up by a remarkable 129% as of this writing. A huge chunk of those gains arrived in April.

Specifically, Intel stock has jumped 76% this month. The company's first-quarter 2026 results are the latest catalyst behind its red-hot rally, with the stock rising nearly 24% in a single session after its quarterly report on April 23. Intel's terrific rally has brought its stock price to almost $85, as of this writing.

But can the chipmaker sustain its momentum and jump to $150 by the end of the year? Let's find out.

Image source: Intel.

Intel's accelerating growth suggests that the stock's rally is sustainable

Intel's Q1 revenue increased by 7% year over year to $13.6 billion, easily crushing the $12.36 billion Wall Street estimate. Even better, the company's non-GAAP earnings more than doubled year over year to $0.29 per share, while analysts would have settled for just $0.01 per share.

Intel's guidance was the icing on the cake. The company anticipates $14.3 billion in revenue in the current quarter at the midpoint of its guidance range. That points toward a year-over-year increase of 11%. Additionally, Intel has guided for $0.20 per share in earnings, which would be a significant improvement over the year-ago period's loss per share of $0.10.

Wall Street would have settled for $0.09 per share in earnings on revenue of $13.07 billion. Clearly, Intel's growth is exceeding expectations. The company has started clocking solid bottom-line growth, primarily fueled by the strong demand for its data center products.

It reported a 22% year-over-year increase in revenue from the data center and artificial intelligence (DCAI) segment last quarter to $5.1 billion. Intel can sustain this solid growth rate as the demand for its server central processing units (CPUs) exceeds supply. These chips are being used in AI data centers to run inference applications.

What's more, Intel's revenue from sales of custom AI processors, known as application-specific integrated circuits (ASICs), almost doubled year over year. Importantly, the company is focused on increasing its manufacturing capacity so it can meet the growing demand for its products. Intel states that demand for its chips is exceeding supply across all its businesses, suggesting its growth should pick up as output improves.

Is a $150 Intel stock price a real possibility this year?

Analysts are expecting a 157% surge in Intel's earnings this year to $1.08 per share. What's worth noting is that the earnings estimate rose significantly following Intel's latest report.

INTC EPS Estimates for Current Fiscal Year data by YCharts

It won't be surprising to see the earnings estimate head higher as the year progresses. Of course, Intel is trading at an expensive 161 times forward earnings right now, but it can justify that valuation by consistently outperforming expectations for the rest of the year. The good part is that Intel is in a position to deliver on that front due to healthy chip demand and improving supply.

As such, there is a strong possibility of Intel's rally continuing for the rest of the year and the semiconductor stock rising another 76% from current levels to reach $150.

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