Intel (NASDAQ: INTC) has triggered a technical signal on its CHATS indicator that previously preceded a rally exceeding 150% over 25 trading days. The stock broke above a key resistance zone near $110 and traded around $123 following the signal, which appeared on September 25 according to analysis from TrendSpider.
The technical setup has been strengthened by rising trading volume and a $10 million insider purchase by Intel's CEO near recent lows.
Strong Q2 Performance Supports Rally
Intel's stock momentum has been supported by improved financial performance. In the second quarter of 2026, reported on July 23, the company posted revenue of $16.1 billion, up 25.4% year-over-year and approximately $1.8 billion above prior guidance. Non-GAAP earnings per share reached $0.42, more than double management's earlier guidance of $0.20.
Growth was driven largely by the Data Center and AI segment, where AI-related businesses expanded more than 70% year-over-year and accounted for roughly 70% of total revenue. Demand for AI infrastructure and AI PCs strengthened, with management noting that customer demand continues to outpace supply.
Q3 Guidance and Capital Expansion
For the third quarter, Intel guided for revenue between $15.8 billion and $16.8 billion, with non-GAAP earnings per share of approximately $0.38. The company raised its 2026 capital expenditure outlook to more than $20 billion as it expands manufacturing capacity.
Intel's foundry business continues to show progress, with narrowing losses and improving yields on its 18A process. Management remains focused on achieving profitability in coming years.
Valuation Considerations
Following the rally, Intel now trades at elevated valuation multiples reflecting significant expectations for continued AI-driven growth. Supporters point to potential support from continued growth in AI infrastructure, expanding demand for Intel processors, improving foundry economics, and stronger execution.
