NEW YORK, July 28, 2026, 04:14 EDT — U.S. premarket trading
Intel Corporation NASDAQ:INTC ended Monday 0.7% lower at $91.67. Shares of NVIDIA Corporation NASDAQ:NVDA and Advanced Micro Devices, Inc. NASDAQ:AMD both declined roughly 5%. Intel outperformed its typical move by 4.4 percentage points.
The PHLX Semiconductor Index dropped 2.2% on Monday. On Tuesday, Asian chip stocks tumbled, with Korean shares leading losses, down 10.8%.
Intel’s narrower loss points to a different strategy. Investors seem to separate worries about CPU shortages from issues tied to funding accelerators. This conclusion is reinforced by Intel’s server backlog and Monday’s selloff driven by accelerator news.
Intel reported that its data-center and AI division posted quarterly revenue of $6.262 billion, a rise of 59% from $3.939 billion. Operating income reached $2.474 billion, close to four times higher than previously.
Based on filings, DCAI was responsible for 70% of the rise in Intel Products’ revenue and accounted for 86% of the growth in operating income. While DCAI made up 41% of product revenue, it contributed 51% of operating income.
| Investor signal | Intel reading | Comparison | Difference |
|---|---|---|---|
| Monday share change | -0.7% | NVIDIA/AMD average: -5.1% | +4.4 percentage points |
| DCAI sales | $6.262 billion | $3.939 billion the previous year | +59% |
| DCAI operating profit | $2.474 billion | $633 million the prior year | +291% |
| Q3 revenue midpoint | $16.3 billion | LSEG projection: $15.1 billion | +7.9% |
| 2026 capital spending | $20 billion | Earlier forecast: $18 billion | +11.1% |
This was not primarily driven by a rebound in PC volumes. Revenue from the client segment increased 13%, while the number of PC units sold declined 8%. Average selling prices jumped 27%, supported by stronger sales of premium offerings.
Server business performance improved. Server revenue climbed by $2.0 billion, with unit volumes up 9%. Average selling prices surged 48%, primarily due to a more robust product mix.
Chief Executive Lip-Bu Tan stated, “AI is driving unprecedented demand for compute.” Total revenue increased 25% to $16.1 billion. Adjusted earnings were 42 cents per share. Intel
Intel forecast third-quarter revenue in a range of $15.8 billion to $16.8 billion, with the $16.3 billion midpoint coming in 7.9% higher than the previous LSEG consensus. The company also projected adjusted EPS of 38 cents, marking a 41% increase.
Intel continues to face demand beyond its current internal server limits. Chief Financial Officer David Zinsner stated that customer contracts extend from three to five years, with certain agreements covering both price and volume terms.
“The stock can continue revaluing,” Shay Boloor from Futurum Group said, citing ongoing data-center expansion and improved foundry economics as reasons. The impact of external customers remains important. Reuters
Foundry revenue increased 31% to $5.765 billion. The loss decreased by $1.1 billion but still stood at $2.089 billion. External revenue reached just $293 million, mostly related to Altera.
Risks are still evident. Intel increased its 2026 capital expenditure target to $20 billion, up from $18 billion. The company posted a GAAP loss of $11.0 billion. The bulk of this came from a $12.5 billion mark-to-market charge related to government escrowed shares.
The next test for the market arrives soon. Major cloud purchasers are due to report this week, coinciding with the Federal Reserve’s rate decision. Either event may alter expectations related to AI investment and funding.
Intel targets large-scale 14A output in 2028. Monday’s steady performance suggests investors expect earnings support. However, it has not yet demonstrated that the foundry will deliver adequate returns. Cash generation has become more important than exceeding expectations.
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