Intel Reports Strongest Quarter in 15 Years Amid AI Demand Surge
Intel Corporation (INTC) reported its best financial performance in nearly 15 years for the quarter ending July 2026, with revenue reaching $16.1 billion—up 25% year-over-year and exceeding expectations of $14.42 billion. Adjusted earnings per share came to 42 cents, double what analysts had predicted at 21 cents. The company's stock rose approximately 4-5% in after-hours trading following the results. The surge was driven by increased demand for CPUs due to a new wave of AI applications known as 'agentic AI,' which requires significant CPU power and has boosted data center chip sales by 59%. Intel also signed long-term contracts with key customers, indicating sustained commitment. The company's foundry business grew 31%, reaching $5.8 billion in revenue. Despite the strong quarter, skepticism remains about whether this is a true turnaround or just a bounce-back from recent declines. While margins improved significantly and new partnerships were announced—such as with Tesla for its advanced manufacturing process—the Apple deal has not been confirmed by either company yet.
Topics: AI demand CPU sales Intel stock performance