Is Intel (INTC) Stock a Buy Before Q2 Earnings?

The parabolic AI commercialized has sent galore spot stocks to the moon, arsenic investors person stake that hyperscalers specified arsenic Google, Microsoft, Amazon, and Meta volition proceed to aggressively grow AI superior expenditures. However, the rally present faces important headwinds, with valuation and gross sustainability concerns resurfacing amid rising contention from cheaper Chinese models.

The large banal benchmarks recorded play losses connected Friday, July 17, with the S&P 500 down 1.6%, the NASDAQ down 2.9%, and the Dow falling 0.9% implicit the week. Chip stocks dragged down the market, with the VanEck Semiconductor ETF (SMH) posting its 3rd play diminution implicit the past month. SMH has fallen astir 9% implicit the said period.

The assemblage further came nether capitalist radar erstwhile Chinese startup Moonshot AI launched its latest model, claiming it closes the spread with immoderate of the starring models from US AI developers.

​Angelo Kourkafas, elder concern strategist astatine Edward Jones, told CNBC, "The latest improvement is contention from open-source models successful China, which are reportedly rivaling the show of starring offerings from Anthropic and OpenAI, raising caller concerns astir the dense gait of exertion spending."

​Considering these concerns, UBS estimates the hyperscalers' capex to dilatory down to 25% adjacent twelvemonth and 6% successful 2028 aft rising sharply to 76% successful 2026.

​Where Intel (INTC) Stands Amidst Declining Chip Stocks?

​Intel Corporation (NASDAQ:INTC) sits successful the mediate of this turbulence, but with a twist: shares are inactive up much than 311% implicit the trailing 12 months adjacent aft a astir 30% pullback from June's highs. The question for investors isn't whether Intel tin past an AI-spending slowdown — it's whether the company's governmental backing, a reported preliminary manufacturing statement with Apple, and the upcoming net study are capable to support a turnaround communicative live erstwhile the broader spot commercialized is losing conviction.

​Intel's Unusual Tailwind

​In August 2025, the White House took connected fixing Intel arsenic its favored task and converted $9 cardinal successful national grants into a 10% ownership stake. The Trump Administration adjacent convinced tech giants, including Apple, Nvidia, and SpaceX, to enactment with the chipmaker. Later, Intel reportedly reached a preliminary statement to manufacture immoderate Apple-designed chips.

​As per Intel, Washington's involvement successful the institution is structured arsenic passive ownership with nary committee seat, and the authorities indispensable ballot with Intel's committee connected shareholder matters, with unspecified "limited exceptions." The woody besides includes a five-year warrant astatine $20/share for an further 5% stake, which the authorities tin workout lone if Intel loses power of its foundry business.