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Massive News for Intel Stock Investors! | INTC Stock Analysis

Parkev Tatevosian, CFA•Jun 10, 2026

Summary

Parkev analyzes the significant 10% jump in Intel's stock price following the announcement of a partnership with Alphabet. This deal involves Intel providing Alphabet with over 3 million specialized AI TPU chips starting in 2028. Parkev attributes this opportunity to Taiwan Semiconductor Manufacturing Company (TSMC) being overly conservative with its capital expenditures, which has created a supply gap that Intel is now filling. He notes that Intel has been securing similar deals with other major players like Nvidia and potentially Tesla, building a backlog worth billions of dollars.

From a financial perspective, Parkev has revised his free cash flow projections for Intel, expecting the company to turn cash flow positive by 2027 with significant benefits arriving in 2029. He highlights the irony that former CEO Pat Gelsinger's aggressive investment strategy, which originally led to his dismissal and a dividend pause, is the very reason Intel is now positioned to succeed. Despite the positive news, Parkev remains cautious about the current valuation. He increased his intrinsic value estimate for Intel from $30 to $49 per share; however, with the market price sitting at $110, he believes the stock has run up too far and too fast.

Intel (INTC): Parkev discusses the company's massive new deal to provide Alphabet with 3 million AI chips by 2028. He notes that Intel is finally reaping the rewards of tens of billions of dollars in investments made over the last several years. However, he maintains a hold rating because his intrinsic value of $49 is significantly lower than the current $110 market price.
Taiwan Semiconductor (TSM): Parkev points out that TSM has been relatively conservative in expanding its manufacturing capacity compared to the massive boom in AI demand. This conservative approach has led to a supply shortage, allowing Intel to step in as a secondary provider for companies like Alphabet and Nvidia. While TSM remains the dominant and most trusted player, its capacity constraints are currently a tailwind for Intel's foundry business.
Alphabet (GOOGL): Alphabet is mentioned as the primary catalyst for Intel's recent stock move due to their agreement for specialized TPU chips. Parkev explains that Alphabet spent months vetting Intel's reliability and manufacturing capabilities before committing to the deal. This partnership highlights Alphabet's increasing capital expenditures and its need for diversified chip supply chains.

Mentioned Stocks

INTC
Sentiment: HOLD

Reasoning: Parkev calculates the intrinsic value of Intel at $49 per share. Given the current market price is approximately $110, he believes the market has already priced in the positive news from the Alphabet deal and then some. While he was bullish when the stock was below $30, he now views the stock as overvalued and rates it as a hold.

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