Intel reported second-quarter revenue of $16.1 billion, up 25% year-over-year and well ahead of its own $14.8 billion guidance, marking its fastest growth in more than fifteen years. Adjusted earnings came in at $0.42 per share, a sharp reversal from a $0.10 loss a year earlier, with the Data Center and AI segment alone climbing 59% to $6.3 billion.
Despite the beat, shares initially jumped about 12% after hours before reversing and closing down roughly 8% at $92.20. Investors focused on Intel's spending plans: the company raised its 2026 capital expenditure outlook from $18 billion to more than $20 billion and warned that 2027 spending will be "significantly higher" still, as it races to build out AI and foundry capacity.
CEO Lip-Bu Tan said AI is driving "unprecedented demand for compute" and that Intel is positioned to capture sustainable growth across its CPU business. The reaction reflects broader investor unease about AI infrastructure spending — the Philadelphia Semiconductor Index has fallen about 14% this month amid questions over how long the current buildout pace can continue.