1 Reason Intel Stock Could Outperform in 2027

Intel's data center and AI segment revenue surged 59% year-over-year to $6.3 billion in Q2, driven by strong demand for server processors and AI inference applications. The company expects industry-wide server processor shipments to grow at strong double digits through 2027, supported by new Xeon 6+ chips built on its 18A manufacturing process. Despite trading at 47x forward earnings, Intel's PEG ratio of 0.8 appears attractive given expected 69% annualized earnings growth over several years.