Intel raises outlook as second-quarter revenue beats forecasts

KUALA LUMPUR, 29 JULY 2026 —

Intel reported second-quarter revenue of US$19.5 billion and adjusted earnings of US$0.23 per share, ahead of forecasts of US$19.2 billion and US$0.20.

The chipmaker said stronger demand for AI servers, tighter cost controls and progress in advanced-node production drove the beat. Data-centre revenue rose 21% year-on-year to US$4.7 billion, lifted by AI accelerators, networking silicon and upgraded enterprise servers. Operating margin expanded to 12.1% from 9.3% a year earlier, reflecting better expense discipline and higher factory utilisation.

Intel’s foundry services, a pillar of its turnaround, posted bookings of US$2.1 billion, a 15% increase. The gain reflected new design wins and higher utilisation at its 18A and 20A fabs. Management said utilisation at the Arizona and New Mexico sites now exceeds 85%, up from 70% in the first quarter.

Analysts at TechInsights raised their full-year 2026 revenue estimate for Intel to US$75.8 billion from US$74.2 billion, citing stronger AI server uptake. Bank of America kept its neutral rating but lifted its price target to US$52 from US$48, citing reduced execution risk over the next two quarters.

Malaysia plays an indirect but material role in Intel’s AI supply chain. Local subsidiaries such as Intel Products (M) Sdn Bhd in Penang and Intel Technology Sdn Bhd in Kulim handle final-stage packaging and validation for networking components and accelerators before shipment to global data-centre customers.

Intel guided third-quarter revenue to US$19.8 billion–US$20.6 billion and adjusted earnings to US$0.25–US$0.30 per share. The range compares with FactSet consensus of US$19.7 billion and US$0.24. The company will host an investor update on 30 July to outline progress on the 18A/20A ramp and customer traction in edge AI devices.

Related: Intel