Intel Stock Soars After Fastest Revenue Growth in Nearly 15 Years

Intel stock surged after the chipmaker posted its strongest quarterly revenue growth in more than 15 years. Second-quarter 2026 revenue reached $16.1 billion, up 25% year-over-year, crushing the $14.42 billion consensus estimate. Adjusted earnings per share came in at 42 cents, doubling Wall Street’s 21-cent forecast. 

Intel stock initially jumped 13% in after-hours trading Thursday before settling near a 4% to 9.5% gain. CEO Lip-Bu Tan credited AI-driven compute demand for the company’s best growth since 2011.

Intel Stock Rally Follows Blowout Data Center Results

Intel’s Data Center and AI segment drove the bulk of this quarter’s outperformance. Revenue in that unit climbed 59% year-over-year to $6.3 billion, far outpacing expectations. The Client Computing Group, which makes PC processors, grew revenue 13% to $8.9 billion.

• GAAP gross margin recovered sharply to 40.4%, up from 27.5% a year earlier.
• Intel produced $7 billion in cash from operating activities in the quarter.
• The company reached 10 long-term server CPU agreements with major customers.

CFO Dave Zinsner said the beat came from higher factory yields and faster production cycles. Server CPU demand still exceeds what Intel’s factories can currently supply, he added.

Why the GAAP Net Loss Doesn’t Tell the Full Story

Despite the revenue beat, Intel reported a GAAP net loss of $11 billion, or $2.16 per share. That loss stemmed almost entirely from a $12.5 billion mark-to-market charge. The charge relates to escrowed shares tied to Intel’s CHIPS Act agreement with the US government.

That agreement gave Washington a 10% equity stake in Intel as part of 2025’s chip manufacturing support deal. Excluding this non-cash accounting item, Intel’s underlying operating performance improved substantially across every segment. Investors largely looked past the GAAP loss, focusing instead on the adjusted profit beat and stronger guidance.

Intel missed the AI boom—or did it?

Q2 revenue, adjusted EPS, and next-quarter guidance all beat expectations.

Revenue reached $16.13B, adjusted EPS came in at $0.42, and Data Center & AI revenue climbed to $6.26B.$INTC.M rose as much as 5.2% after hours.

Has Intel finally… pic.twitter.com/kxweH1Ut8j

— MSX (@msxcom) July 24, 2026

Intel Raises Spending as AI Demand Outstrips Supply

Intel raised its 2026 capital expenditure guidance to over $20 billion, up from an earlier $18 billion target. Management expects 2027 capital spending to rise significantly further above this year’s level.

• New spending covers Intel 3, 18A, and 14A process technology development.
• Funds will also expand cleanroom space, advanced packaging, and substrate supply.

Intel’s 18A wafer output grew more than 50% quarter-over-quarter, though large customer validation orders remain limited. Intel Foundry’s external revenue reached just $293 million, about 5% of total foundry revenue. The foundry’s operating loss narrowed to $2.09 billion, showing gradual progress toward profitability.

Stock Performance and Analyst Outlook

Intel stock has surged roughly 170% year-to-date through Thursday’s close, extending 2025’s 84% gain. Shares had pulled back 28% in July alone before this earnings report reversed the slide. The stock’s 52-week range spans $18.97 to a record $142.35, set on June 30, 2026.

Market capitalization stood near $503.76 billion following Thursday’s close at $100.23. Intel carries a consensus “Hold” rating among analysts, with an average 12-month target price of $108.63. Intel also deepened its collaboration with Google Cloud (Alphabet) to accelerate its AI-first computing strategy. Rivals AMD (NASDAQ: AMD) and Nvidia remain closely watched as Intel works to reclaim data center market share.

Final Thoughts

Intel stock’s rally reflects genuine operational momentum, not just a one-time earnings surprise. The 59% Data Center and AI growth shows Intel is finally capturing a real share of the AI infrastructure boom. Rising capital spending signals management’s confidence that demand will keep outpacing supply well into 2027. 

Investors should watch whether Intel Foundry’s external revenue grows meaningfully, since that remains the clearest gap versus rivals like TSMC.

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