INTC Stock Falls To 2-Month Low – Susquehanna Sees 20% Upside, Google Cloud Deepens Its AI Bet

• Intel and Google Cloud said Gemini Enterprise will be deployed across Intel's workforce.
• Google Cloud will provide additional compute capacity for chip-design simulations.
• The stock's decline came amid broader weakness in technology shares, with the Nasdaq-100 falling more than 1.3% as of this writing.

Intel (INTC) shares tumbled in midday trade on Thursday, hitting a two-month low, despite two positive developments – an expanded AI partnership with Google Cloud (GOOGL) and a price target hike by Susquehanna. 

INTC’s stock dropped over 6% by midday trade to lows last seen at the beginning of May, while GOOGL’s stock traded flat. On Stocktwits, retail sentiment around Intel remained in ‘neutral’ territory over the past day. 

Intel, Google Expand AI Collaboration

Intel and Google Cloud said they're deepening the earlier-announced multi-year collaboration between them. Gemini Enterprise will roll out across Intel's global workforce to automate engineering, supply chain, and corporate workflows, according to the companies' joint statement. 

Google Cloud will also supply compute to run alongside Intel's own on-premises hardware for chip-design simulations, with the goal of speeding up the semiconductor development cycle. 

The earlier multi-year collaboration between Intel and Google Cloud was announced in April and focused on advancing AI and cloud infrastructure, with Intel’s Xeon processors continuing to power Google Cloud’s AI, inference, and general-purpose workloads. 

Susquehanna Sees Nearly 20% Upside Ahead Of Earnings

Susquehanna analyst Christopher Rolland raised his Intel price target to $115 from $80 ahead of the company's second quarter (Q2) earnings, due July 23 after the closing bell. The new price target implies a potential upside of nearly 20% from INTC stock’s current levels.
Wall Street expects the firm to report earnings of $0.29 per share on revenue of over $14 billion, as per Koyfin data. Rolland kept Susquehanna’s ‘Neutral’ rating but pointed to stronger-than-expected server CPU demand and modestly better PC ODM builds in the near term. 

He also stated that the server-chip supply-demand imbalance is likely to persist through 2028. The analyst added that the offsetting risk is a sharper-than-usual seasonal slowdown in PC builds in the back half of the year, tied to worsening memory-market conditions, adding that it's the same memory crunch that's been rattling names like Micron (MU) and SanDisk (SNDK), which are scheduled to report Q2 earnings later this month.

The drop in Intel’s stock came amid a broader drawdown in the equities market. U.S. equities were mixed in midday trade on Thursday. The SPDR S&P 500 ETF (SPY) was down 0.32%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) fell more than 1.3%. 

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