Intel Could Still Be Undervalued Based on Strong Free Cash Flow Mark R. Hake, CFA April 26, 2026 4 min read INTC Analysts are upgrading their Intel Corp (INTC) price targets after its recent earnings results, and based on management's expectation of positive free cash flow this year. One way to play it is to sell short INTC out-of-the-money puts, which have high yields.
INTC closed at $82.54, up +23.60% after its Q1 earnings results the night before on April 23. Its price target could exceed $100 per share, as this article will show. More News from Barchart Option Volatility and Earnings Report for April 27 – May 1 Oil is Off Its Highs But Shorting Chevron Puts Provides Good Yields Why General Motors (GM) Stock Offers a Difficult But Enticing Bullish Trade Get exclusive insights with the FREE Barchart Brief newsletter.
Subscribe now for quick, incisive midday market analysis you won't find anywhere else. INTC stock - last 3 months - Barchart - April 24, 2026 Intel reported that its Q1 revenue rose 7.2% YoY. Moreover, adjusted earnings per share (EPS) were 29 cents compared to 15 cents in Q4 (up +93% QoQ) and just 13 cents a year ago (+123% YoY).
The growth was driven by high demand for its CPU products, which management said was continuing to outpace its growing supply. This is driven by investments in artificial intelligence by many of Intel's clients. Moreover, despite recording a negative adjusted free cash flow (FCF) of $2.016 billion, management said it expects full-year FCF to be positive.
In addition, the CFO indicated that Intel expects to retire $2.5 billion in debt as it comes due this year. That allows analysts to forecast FCF going forward. Strong FCF Outlook and Valuation Analysts now project revenue will rise to $58.43 billion this year and $63.72 billion next year.
Based on its expected FCF margin, it's possible to forecast Intel's FCF next year. For example, if Intel makes positive FCF this year, it would need to generate at least $2.01 billion plus $2.5 billion (for debt payments) over the next 9 months. That works out to almost an 8% FCF margin: $4.6 billion FCF / $58.43 billion revenue 2026 = 0.0787 = 7.87% FCF margin So, assuming next year that 8% magin applies to analysts' revenue estimates, Intel could generate $5 billion in FCF: 0.08 x $63.72 billion 2027 revenue est. = $5.1 billion FCF That could be why Intel stock has moved so much.
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