SANTA CLARA, Calif., July 24, 2026 — Intel reported second-quarter revenue of $16.1 billion, a 25% increase from a year earlier, as demand for processors used in data centers and artificial-intelligence systems delivered the company’s strongest sales growth in more than 15 years.
The chipmaker said non-GAAP earnings reached 42 cents a share, while its Data Center and AI division generated approximately $6.3 billion in revenue, up 59% from the same quarter last year.
Intel forecast third-quarter revenue of $15.8 billion to $16.8 billion and adjusted earnings of approximately 38 cents a share.
The results demonstrate that the AI infrastructure boom is spreading beyond companies selling the most advanced graphics processors.
Data centers also require traditional central processing units, custom chips, networking products, memory, packaging systems and enormous amounts of electrical and cooling infrastructure. Intel remains a major supplier in several of those markets.
Its traditional personal-computer chip business grew approximately 13%, while Intel Foundry revenue rose 31% to roughly $5.8 billion.
The challenge is no longer proving that Intel can sell more chips. It is proving that the growth can produce durable profits.
Intel reported a GAAP loss of $2.16 a share, reflecting restructuring and other charges. Its foundry business also remains deeply unprofitable as the company spends heavily to build manufacturing capacity capable of competing with Taiwan Semiconductor Manufacturing Co.
The company plans more than $20 billion in capital spending during 2026 and expects investment to increase substantially in 2027. Those commitments give Intel the ability to expand production if demand remains strong, but they also increase the financial consequences if major customers do not materialize.
Intel is positioning its future around a combination of processors, contract manufacturing, advanced chip packaging and custom semiconductor designs. That gives the company several ways to participate in AI spending, even if it does not displace Nvidia in the accelerator market.
The company has also been working to restore manufacturing discipline after years of delays allowed overseas competitors to take the lead in advanced semiconductor production.
Its planned 14A manufacturing process is expected to reach large-scale production in 2028. Winning outside customers before then will be critical because factories become more economical as additional clients spread the enormous cost of equipment and research across more chips.
Intel shares initially rose following the earnings release but traded lower Friday morning as the broader technology sector weakened. The reversal reflected high expectations already built into a stock that had risen sharply during 2026.
Investors will now focus on whether data-center demand remains strong through the second half of the year, whether Intel can narrow foundry losses and whether its higher capital budget produces binding customer commitments.
JBizNews Desk | Santa Clara
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