Overview
- Intel reported better-than-expected second-quarter results on Thursday with $16.1 billion in revenue and $0.42 in adjusted earnings per share, and Data Center & AI sales rose to $6.3 billion.
- The company guided third-quarter revenue of $15.8 billion to $16.8 billion and said it would raise 2026 capital spending to roughly $20 billion with even higher investment planned for 2027 to expand wafer and packaging capacity.
- Management reaffirmed 14A risk production in 2027 and a high-volume ramp in 2028 while the foundry grew revenue to $5.8 billion but still recorded a multibillion-dollar operating loss.
- Media reports say Google placed an order for 3 million custom Tensor Processing Units with Intel Foundry, a claim not confirmed by the company, and the stock swung sharply after-hours before reversing much of its gains.
- The quarter showed clearer yield and margin improvement that supports the turnaround thesis, but ongoing supply constraints and rising capex create funding and execution risks investors and customers will watch closely.