Intel posts record 25% revenue surge on AI demand

Intel reported second‑quarter 2026 revenue of $16.1 billion, a 25 % year‑over‑year increase and the fastest growth in fifteen years. The surge was driven by soaring demand for its data‑center CPUs used in AI infrastructure, with the data‑center and AI segment revenue jumping 59 % to $6.3 billion. Intel also saw broad‑based growth: client computing up 13 % to $8.9 billion and foundry revenue rising 31 % to $5.8 billion. The company forecast third‑quarter 2026 revenue of $15.8‑$16.8 billion and raised its capital‑expenditure outlook to $20 billion, up from $18 billion. Gross margins improved to 41.8 % on a non‑GAAP basis. A GAAP net loss of $11 billion reflected a $12.5 billion mark‑to‑market charge tied to escrowed shares under the U.S. CHIPS Act, while adjusted net income was $2.2 billion. CEO Lip‑Bu Tan highlighted the AI boom as an unprecedented driver of compute demand, positioning Intel to capture sustainable growth. Competitors Nvidia continue to dominate the AI‑accelerator GPU market, while AMD remains a distant second; Intel’s AI‑accelerator efforts lag, but its CPU business is benefiting from the same AI surge.

Analysts raised price targets, and the stock has more than doubled this year despite a recent sell‑off. Intel also announced new AI‑focused server CPUs built with partners such as SambaNova and Foxconn, and progress on its 18A process and upcoming 14A production.