Intel delivered its strongest revenue growth in more than fifteen years during the second quarter of 2026, sending shares up more than 8% in after-hours trading. Revenue rose 25% year-on-year to $16.1 billion, comfortably ahead of the $14.4 billion analysts had forecast. The company also reported adjusted earnings of $0.42 per share, nearly double the consensus estimate of $0.21. A reported net loss of $11 billion, which widened from $2.9 billion a year earlier, reflected capital expenditure, research and development costs, and accounting adjustments linked to the reorganisation of its contract manufacturing arm, Intel Foundry, rather than operational deterioration.

The surge was driven by accelerating demand for data-centre processors as companies race to deploy artificial intelligence. Intel’s data-centre and AI business grew 59% to $6.3 billion, while its client computing group, which covers laptop and desktop chips, generated $8.9 billion in sales. Chief Executive Lip-Bu Tan attributed the performance to “greater speed, accountability, and customer focus,” and said the company was well positioned to capture sustained growth across CPUs, custom AI chips and advanced packaging. To meet the demand, Chief Financial Officer David Zinsner said Intel was raising its 2025 capital spending forecast from $18 billion to $20 billion, with a further significant increase expected next year. The company has signed multi-year supply agreements with customers for data-centre CPUs and specialised XPUs, some of which lock in both volume and price.

Viewed from Washington, the results offer a measure of vindication for the Biden-era decision to take a 9.9% equity stake in Intel as a pillar of domestic chip manufacturing. The foundry business, which lost $2.1 billion in the quarter, remains a work in progress, but it secured Tesla as a customer for its forthcoming 14A process technology, to be used in the automaker’s “Terafab” AI chip. Tan said Intel was now “fully committed” to high-volume 14A production in 2028, a signal that eased lingering doubts among US analysts about the viability of the foundry strategy. In Europe, Intel formalised a €5 billion investment to modernise and expand its facilities, aiming to strengthen the operational autonomy of Intel Foundry against global competitors.

For the third quarter, Intel projected revenue of $15.8 billion to $16.8 billion and adjusted earnings of $0.38 per share, both above market expectations. The company holds about $30 billion in cash and a $10 billion credit line, and while Zinsner did not rule out a future equity sale, he said no such plans were currently authorised. The next factual milestone is the third-quarter earnings report, which will test whether Intel can sustain its momentum and convert the AI-driven demand surge into durable profitability across both its product and foundry divisions.