Intel reported its fastest revenue growth since 2011. Its stock surged

Intel's revenue forecast for the current quarter significantly exceeded analysts' expectations. In addition, the chipmaker posted its fastest revenue growth in 15 years last quarter, according to CNBC. The boom in big tech spending on data centers is fueling the chipmaker’s long-awaited recovery, notes Bloomberg.

However, Intel did not name any major customers for its contract manufacturing business. Following the release of its latest quarterly results, Intel’s stock initially jumped 12% in after-hours trading on July 23, to $112.1 per share, but then slowed its gains to 2%. During regular trading on Thursday, the stock fell 2.3% to $100.2.

For the current quarter, Intel forecasts revenue of between $15.8 billion and $16.8 billion. Even the lower end of this range significantly exceeds analysts’ average forecast of $15.1 billion, Bloomberg notes. The chipmaker also expects adjusted earnings per share of $0.38 for the third quarter. Analysts surveyed by LSEG had expected $0.27, according to CNBC. The forecast underscores Intel’s success in working with data center operators, who are seeking more chips to meet the demand for computing power for artificial intelligence, Bloomberg reports.

Intel's revenue in the second quarter of 2026 rose 25% year-over-year to $16.1 billion. Analysts surveyed by LSEG had expected revenue of $14.42 billion, according to CNBC. The network notes that this is the highest quarterly revenue growth rate since 2011. Adjusted earnings per share came in at $0.42, compared with analysts’ expectations of $0.21.

At the same time, the net loss more than tripled compared with the same period last year—rising to $11 billion from $2.9 billion a year ago—and the loss per share was $2.16.

Intel’s adjusted gross margin—or the portion of revenue remaining after deducting production costs—rose to 40.4% in the second quarter. That’s nearly 13 percentage points higher than a year earlier, but profitability remains well below the levels Intel achieved at the peak of its growth, Bloomberg notes. At its peak, between 2010 and 2012, the company regularly reported gross profit margins above 60%.

Revenue for the chipmaker’s division that produces semiconductors for data centers and artificial intelligence soared 59% year-over-year last quarter to $6.3 billion, more than doubling Intel’s overall revenue growth rate, Bloomberg reports. The new Client Computing and Physical AI division, which combines these two business lines, reported revenue of $8.9 billion for the same period (a 13% increase).

"Demand for central processing units in data centers is growing rapidly," Intel CEO Lip-Bu Tan said in an interview with Bloomberg. "Demand is growing faster than we can increase supply, and that's a pleasant problem."

Intel Foundry, the company’s contract chip manufacturing division—which analysts are closely monitoring—reported second-quarter revenue of $5.8 billion (a 31% increase year-over-year). In previous years, analysts noted that the foundry division’s revenue was weak and that the company’s survival would depend on it. Currently, this division is almost entirely dependent on orders from other Intel divisions, although the company is striving to attract external customers, Bloomberg notes. This week, Intel Foundry secured Fortinet—its first publicly named client under Lip-Bu Tan, according to CNBC. However, Intel has yet to name a single major client for its foundry business, the network emphasizes.

According to Tan, Intel is also making progress in improving its manufacturing processes. This helps the company fulfill more orders and increases the likelihood that other companies will choose Intel as a contract manufacturer. In a conversation with Bloomberg, Tan declined to discuss specific deals with customers, noting only that the company is working on “several fronts,” and added that the first tangible results in this area should appear by the beginning of next year. According to media reports, Intel is or has been in talks to manufacture chips for Tesla, Apple, Google, and Amazon. The company already has a long-term contract with Amazon Web Services. MediaTek and Qualcomm have confirmed their collaboration with Intel.

Intel is also increasing its capital expenditures to ensure it can meet demand for both its own chips and the products it manufactures for third-party customers. The company’s CFO, Dave Zinsner, said that the chipmaker, which had previously planned to reduce capital expenditures compared to last year, now intends to increase its budget. Spending is likely to continue growing next year as well. In 2026, they will total about $20 billion, he told Bloomberg.

This news story is being updated

This article was AI-translated and verified by a human editor