Nvidia Just Reported Another Record-Beating Earnings. But Is Intel Stock A Better Buy?

Intel stock (NASDAQ: INTC) has demonstrated exceptional movement within the semiconductor sector this year. After reaching a peak near $133 in early May 2026, marking its first all-time high in over 26 years, the shares subsequently saw a correction, declining from approximately $132 and nearing the $100 threshold over several trading sessions.

Yet, the last two trading sessions brought a swift reversal, with a rise of over 2.4% followed by a gap-up exceeding 7.3% on strong volume. With the stock boasting a jaw-dropping year-to-date gain of over 210%, investors are left wondering what caused this rapid U-turn and whether Intel is suddenly a better bet than its arch-rival, Nvidia.

Market Share Pressures and Profit-Taking

The mid-May decline was attributed less to Intel’s specific operational issues and more to broader market uncertainty. Leading up to Nvidia’s much-anticipated mid-May earnings report, many investors reduced their positions in chip stocks, driven by concerns that the enthusiasm around artificial intelligence might be softening.

Additionally, broader macroeconomic challenges, such as oil prices sustaining above $110, encouraged institutional investors to realize gains from their top-performing assets.

The subsequent rapid upturn, however, followed direct operational confirmation from the company’s leadership. On May 19, Intel CEO Lip-Bu Tan announced on CNBC that the company’s advanced foundry manufacturing yields are showing consistent improvement, progressing at a rate of 7% to 8% monthly. This update provided a crucial validation of execution that market observers had been awaiting.

Analysts to the Rescue

Just as the selling appeared to be gaining momentum, Wall Street stepped in with a string of bullish upgrades that stopped the slide cold. Melius Research analyst Benjamin Reitzes reiterated a Buy rating and raised his price target to $150, implying potential upside of more than 40% from recent trading levels.

Citi analyst Atif Malik also lifted his target to $130 from $95, projecting the total addressable market for server CPUs could reach $132 billion by 2030, driven by inference and agentic AI workloads.

Is Intel A Better Buy than Nvidia?

Intel’s year-to-date gain of over 210% is eye-catching. Meanwhile Nvidia trails behind with just under 18%. But headline performance figures can be deceptive. As per its Q1 of fiscal 2027 earnings call yesterday, Nvidia saw its revenue surge 85% to reach $81.6 billion dollars. Adjusted EPS came in at $1.87 versus analyst estimate of $1.76, with data center revenue going up 92% to $75. 2 billion.

Management guided for Q2 fiscal 2027 revenue of $91 billion, implying continuation of strong demand for its AI infrastructure equipment. Furthermore, the company added $80 billion to its share purchase program. These figures will certainly cool the doubts that was setting in regarding AI market growth.  Around three out of four AI chips sold today carry Nvidia’s name, thanks largely to how tightly linked their hardware works with its CUDA software ecosystem.

Intel, on the other hand, presents a noteworthy turnaround narrative, with its data center and AI division demonstrating robust growth. Also, the company gains advantages from U.S. policy backing, significant domestic manufacturing investments through the CHIPS Act, and a broad product portfolio encompassing CPUs, foundry services, and PCs.

The stock’s valuation, while elevated after the rally, trades at a discount to Nvidia on certain forward metrics, appealing to those betting on multiple expansion and operational leverage.

In summary, Nvidia continues to be a dominant force in high-performance computing, yet it carries a substantial valuation and depends exclusively on third-party foundries such as TSMC for manufacturing. Intel, in contrast, offers potential for significant value realization and serves as a strategic hedge in the current geopolitical landscape.

Investors weighing the two should consider portfolio fit. They should go for Nvidia for pure AI growth exposure, Intel for a higher-risk, higher-reward turnaround with cyclical and strategic optionality.