Tech ETFs to Buy as Intel Shares Sink Despite Q2 Earnings Beat
Shares of Intel Corp. INTC slid 7.9% in a single trading session on July 24, 2026, despite announcing better-than-expected second-quarter results. Impressively, this marked the fastest revenue growth rate for any period in almost 15 years for INTC.
The pullback was most likely caused by investors’ concerns over the company’s higher spending plans and lingering manufacturing losses.
Nevertheless, investors should also consider Intel’s solid revenue growth trajectory. In the second quarter, the majority of that growth was driven by its data center business, where revenues increased 59% year over year.
Against this backdrop, investors might see the recent pullback in INTC’s share price as a golden opportunity to build or increase their position in the U.S. chipmaker. However, as Intel’s Foundry segment continues to endure significant operating losses — totaling $2.1 billion in the second quarter — investing in an exchange-traded fund (ETF) offers a compelling, safer alternative.
An ETF with heavy exposure to Intel allows investors to capture the company’s potential long-term rebound while benefiting from the upside of its semiconductor peers. Choosing a tech ETF shields your portfolio from the concentrated execution risks and heavy cash burn of a single stock, while ensuring you stay positioned for the accelerating, AI-led tech boom.
Before identifying the most suitable ETF vehicles for your portfolio, it is important to take a closer look at Intel’s second-quarter results to understand why a targeted ETF strategy makes sense.
A Brief Analysis of INTC’s Q2 Results
Intel reported adjusted earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate by 100%. Its revenues beat the consensus estimate by 11.9%.
During the second quarter, Intel launched its next-generation data center CPU, Xeon 6+, which is its first server-class product on Intel 18A for sustained performance under real-world power constraints.
Further, Intel expanded its physical AI and robotics momentum with more than 130 customers adopting or testing Intel Core Ultra Series 3 and Intel Core Series 3 processors for edge AI and robotics applications.
Meanwhile, Intel Foundry entered high-volume manufacturing for a subset of Intel Core Ultra Series 3 processors, code-named Panther Lake, using ASML’s EXE High NA EUV technology.
In terms of outlook, Intel said it expects flat PC sales in the third quarter because of the memory shortage.
As INTC steadily ramps up its production capacity, backed by soaring demand, it projects 2027 capital expenditures to be significantly above the 2026 levels, with the vast majority spent across its U.S. network. To this end, the company notes that from 2021 through 2026, its total capital spending in tools and space in the United States is approaching $100 billion, which it claims to be significantly higher than any other semiconductor company over that time frame.
Analysts’ Reaction
Following Intel’s second-quarter results, JPMorgan analyst Harlan Sur raised his price target on the stock to $85, nearly double the prior target of $45 (as cited in Yahoo Finance).
Bernstein SocGen Group has also raised its price target on Intel stock from $100 to $110, while maintaining a Market Perform rating following the company’s second-quarter results.
Intel-Heavy ETFs to Buy
Given Intel’s soaring capital expenditure and the broader tech industry’s tailwinds, the following Intel-heavy ETFs offer the most balanced way to capture the underlying value chain while mitigating individual stock risk:
First Trust NASDAQ Semiconductor ETF FTXL
This fund, with net assets worth $1.37 billion, provides exposure to 34 U.S. semiconductor companies. Of these, Intel takes the second spot, accounting for an 11% share of this fund.
FTXL has gained 64.2% year to date and charges 60 basis points (bps) in fees. The fund sports a Zacks ETF Rank #1 (Strong Buy) and traded at a volume of 0.54 million shares in the last trading session.
State Street SPDR NYSE Technology ETF XNTK
This fund, with assets under management worth $2.02 billion, provides exposure to 35 leading U.S.-listed technology-related companies. Of these, Intel takes the second spot, accounting for a 5.53% share of this fund.
XNTK has risen 18% year to date and charges 35 bps in fees. The fund sports a Zacks ETF Rank #1 and traded at a volume of 0.04 million shares in the last trading session.
iShares Semiconductor ETF SOXX
This fund, with assets under management worth $41.68 billion, provides exposure to 30 companies across the semiconductor value chain, including those driving innovation in AI and benefiting from capital investments in digital infrastructure. Of these, Intel takes the fifth spot, accounting for a 5.11% share of this fund.
SOXX has surged 63.2% year to date and charges 34 bps in fees. The fund sports a Zacks ETF Rank #1 and traded at a volume of 14.61 million shares in the last trading session.
Pacer Data and Digital Revolution ETF TRFK
This is an actively managed ETF with assets worth $907.4 million, providing exposure to 98 large-cap companies driving transmission, manipulation, storage, and use of data. Of these, Intel takes the ninth spot, accounting for a 3.15% share of this fund.
TRFK has rallied 33.6% year to date and charges 49 bps in fees. The fund holds a Zacks ETF Rank #2 (Buy) and traded at a volume of 0.33 million shares in the last trading session.
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Intel Corporation (INTC) : Free Stock Analysis Report
iShares Semiconductor ETF (SOXX): ETF Research Reports
First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports
State Street SPDR NYSE Technology ETF (XNTK): ETF Research Reports
Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).