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Intel Beats Q2 Estimates as AI Demand Spurs Foundry Build-Out

Ramped demand for agentic AI has led Intel to raise 2026 capital spending to more than $20 billion to expand foundry and data-center capacity.

Overview

  • Intel reported stronger-than-expected second-quarter results on July 23, with revenue of about $16.1 billion and adjusted earnings of $0.42 per share driven by a 59% jump in Data Center & AI revenue.
  • Management said Intel 18A production hit key milestones and the company is committed to 14A high-volume production targeted for 2028, signaling progress on its advanced-node roadmap.
  • Intel Foundry revenue rose roughly 31% to $5.8 billion and media reports say Google has ordered 3 million custom TPUs from Intel, a claim the company has not universally confirmed in its filings.
  • GAAP accounting showed a large one-time net loss even as non-GAAP profit and gross-margin gains improved, and Intel raised 2026 capex to over $20 billion to fund equipment, clean rooms, and packaging capacity.
  • Investors reacted with initial share gains followed by pullbacks as analysts praised execution on supply and margins but flagged valuation, supply constraints, and the funding and execution risks of a capital-intensive foundry scale-up.