NEW YORK, July 27, 2026, 04:22 EDT — U.S. premarket trading saw shares in Intel Corporation NASDAQ:INTC drop 7.9% as a recent surge in AI profits runs into the challenge of a $20 billion capital expenditure commitment.
- Intel ended Friday at $92.32, a drop of 7.9%. The semiconductor index slipped 4.5%.
- Intel’s data-center chips accounted for approximately 71% of its annual revenue increase.
- Just around 5% of Intel Foundry’s revenue came from external customers.
Intel started Monday’s premarket trading after an initial surge from a robust earnings report faded. Shares finished Friday at $92.32, representing a 7.9% decrease.
The outcome did not indicate weak demand. Revenue for the second quarter climbed 25% to $16.1 billion. Adjusted earnings were 42 cents per share.
Intel posted a GAAP net loss of $11.0 billion, mainly due to a valuation adjustment. The company did not include a $12.5 billion mark-to-market loss on shares held in escrow. Non-GAAP net income totaled $2.2 billion.
Operating leverage was the clearer driver. Revenue climbed by $3.269 billion compared to the previous year. Non-GAAP operating income rose $3.273 billion.
That amounts to about one dollar in additional operating profit for every extra dollar of sales. The comparison begins from a low base in 2025.
Company documents reveal both the level of leverage and the existing foundry shortfall.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Total revenue | $16.128 bln | $12.859 bln | +$3.269 bln |
| Non-GAAP operating income | $2.770 bln | -$0.503 bln | +$3.273 bln |
| Data Center and AI revenue | $6.262 bln | $3.939 bln | +59% |
| External foundry revenue | $0.293 bln | $0.022 bln | +$0.271 bln |
| Foundry operating loss | -$2.089 bln | -$3.168 bln | Improved by $1.079 bln |
Intel’s revenue rise was led by Data Center and AI, which contributed $2.323 billion. This segment accounted for approximately 71% of the company’s overall growth.
External demand for Intel’s foundry business is still limited, with non-Intel clients accounting for $293 million—about 5%—of total foundry sales.
The rise was mainly due to Altera transitioning to an external client following its deconsolidation. Despite reducing its losses, Foundry recorded a $2.089 billion loss.
Jay Goldberg, an analyst at Seaport Research, said Intel’s fixed-cost structure provides “considerable operating leverage.” The most recent quarter backs up that assessment. MarketWatch
Management intends to incorporate much of that leverage into additional capacity. Intel increased its 2026 capital expenditure guidance to more than $20 billion, up from $18 billion. Capital spending is also projected to climb further in 2027.
Intel’s head of investor relations, John Pitzer, said the higher targets are meant to “signal our confidence in the growth” throughout the company’s operations. MarketWatch
Cash flow is stronger. In the first half, operating cash flow was $1.9 billion higher than capital spending on property and equipment. The previous year, the gap stood at negative $5.9 billion.
The increase reflected $1.7 billion in customer deposits. Intel additionally paid $934 million in prepayments to suppliers.
Friday’s drop lagged the chip index by 3.4 percentage points. Worries about the sector contributed as well. Despite the recent slide, Intel shares remain over two times higher for the year.
Outlook is steady at present. The midpoint for third-quarter revenue stands at $16.3 billion, roughly 1% higher than the second quarter. Adjusted earnings per share are anticipated to reach 38 cents.
The upcoming round of megacap earnings this week will offer a fresh test. Investors will assess if increased spending on AI among the biggest players continues to generate strong cash flow.
Risks: Foundry losses continue to be significant, and 14A still lacks firm demand commitments. Component shortages might continue past 2027. Increased capital expenditure has the potential to undo Intel’s recent improvements in cash flow.
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