Intel (INTC) stock has been nothing short of a blockbuster investment in 2026, but options traders believe it will rip higher after the semiconductor giant reports earnings on October 29th.
Consensus is for INTC to record $16.48 billion in revenue on $0.4 per share of earnings (EPS) for its third financial quarter, representing nearly 21% and 74% year-on-year increase, respectively.
Note that Intel shares are already trading up some 135% versus the start of this year.
Where options data suggests Intel stock is headed
In the derivatives market, a put-to-call ratio of less than 1.00 is typically characterized as in favour of the bulls.
That metric, for INTC options contracts expiring November 6th, sits at 0.67 as of writing, indicating traders are increasingly betting on a post-earnings surge.
According to the latest data from Barchart, the upper price on those contracts is set at about $102 currently, signaling potential for a more than 9% rally through the end of next week.
Importantly, if the options sentiment does play out, Intel stock would have broken above its major moving averages (MAs), which may help sustain the upward momentum through the remainder of 2026.
INTC does not, however, pay a dividend to appeal income-focused investors.
Needham recommends caution in playing INTC shares
Intel is set to report earnings just days after announcing plans of acquiring “Classiq” – a quantum software firm – for about $2.3 billion.
This would be the highest-profile quantum software deal to date.
While INTC shares have already staged a significant comeback amidst continued improvement in the underlying business, including the foundry segment, Needham analysts maintain their “Hold” rating on the semiconductor giant.
In its latest research report, the investment firm admitted that buying Classiq complements Intel’s silicon spin-qubit hardware and production capabilities – transforming it into a complete quantum computing platform.
But said its AI accelerators remain relatively less competitive, and continued loss of share in data-center CPU market may weigh on the company share price, especially given its premium valuation of about 83x forward earnings.
What to look for as Intel reports earnings on October 29
For investors, the bigger question on October 29th may be what management says about the road ahead.
A quarterly beat will offer an immediate boost but sustaining investor confidence will likely require a convincing outlook for margins, cash generation, and spending discipline.
Watch for evidence that stronger demand can translate into durable profitability, rather than simply higher sales.
Management’s comments on customer commitments and the timing of returns on investment could also shape the market’s response.
Ultimately, the upcoming Q3 earnings release will test whether INTC stock can give shareholders fresh reasons to stay invested as attention shifts toward 2027.
That said, the mean price target for Intel Corp sits at nearly $114 currently, indicating about a 20% upside potential from here.
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