Intel forecasts profit in 2025‑26 as AI revenue jumps 59%

Intel Corporation reported a 25% year‑over‑year revenue increase to $16.1 billion, driven largely by a 59% surge in its Data Center and AI segment. The chipmaker posted a positive operating margin of 7.6% for the trailing twelve months, marking a turnaround from a loss‑making position a year earlier. Management said the company now expects a profitable year as early as 2025 or 2026, ahead of its prior 2028 target, and raised its 2026 capital‑expenditure guidance to over $20 billion, primarily for AI infrastructure and foundry services.

Investor activity around Intel shifted during the quarter. Arete Wealth Advisors LLC sold 8,919 shares, reducing its holding to 15,407 shares worth about $680,000. Caerus Investment Advisors LLC cut its stake by 40%, selling 17,045 shares and ending the quarter with 25,544 shares valued at roughly $1.13 million. These moves reflect ongoing adjustments by institutional investors as Intel’s financial outlook improves.

CEO Lip‑Bu Tan highlighted the dual focus on expanding foundry services and advancing custom AI CPUs as central to the company’s recovery strategy. While the foundry division still posted a $2.1 billion loss, the loss narrowed from the previous quarter, indicating progress in yield and scale improvements.