It does generally select for some degree of available intelligence, but only enough to survival and reproduction. Adding intelligence can also decrease fitness... for bats, apparently there is a corration between larger brains and smaller testes, for example (I don't know if the bigger brained ones are any smarter, however)
There are others exemples I've seen, but I don't quite recall them in detail. I think they were based onthe idea that, in most cases, a slightly better intelligence analizing the situation is outperformed by pure pre-programmed instinct. Once instincts had evolved adapting the species for a certain niche (which will likely happen first), it's reasonably harder to a form of more flexible and complex intelligence to replace it. Usually, the evolutionary steps in that direction would not have enough reproductive advantage, instinct would just do the job, perhaps even better, faster, without wasting time and energy "thinking".
(Some recent mammals, such as the big cats (in a broader sense), had a reasonably increase in brain size... cougars have bigger brains than sabre-tooth cats, if I recall... the same probably happened with other predators... the relative brain size of birds is also reasonably bigger even if compared with dinosaurs with "big" brains, such as troodontids and the like)
Our level of intelligence is somewhat beyond the mininal or optimal required for survival, and some authors, like Darwin himself I think, try to explain that as the result of evolution driven by sexual selection. Sexual selection has the peculiarity of making things evolve beyond what would be "reasonable" for simple survival and reproduction, it can even force the evolution of something that would be otherwise unfit.
That explains why we are an exception, sexual selection does not tends to convergence or paralellism as much as natural selection does, because it's selection targets can be "random", even counter-adaptative, whereas natural selection will tend to repeat itself in similar situations.
Sexual selection wasn't necessarily the sole driver of that evolution, anyway, since this trait turned out to be adaptive, or, phrasing better, we turned out to become adaptively dependant of this trait... even other primates were found to have a correlation between somewhat bigger brains and the number of individuals in their social groups... that's somewhat like an intermediate link between sexual and natural selection, I think.