Intel Targets $100 Billion Custom AI Chip Market, Increases CapEx Amid Strong Demand
During Intel's second-quarter earnings call in July 2026, CEO Lip-Bu Tan outlined the company’s strategic push into custom artificial intelligence (AI) silicon. He emphasized a target of over $100 billion total addressable market for specialized AI chips and highlighted Intel’s unique position to leverage its x86 computing franchise and end-to-end manufacturing capabilities. Tan noted that demand for compute is at an unprecedented level, with 70% of the company's Q2 revenue coming from AI-driven businesses. The ASIC segment alone nearly tripled year-over-year in revenue and now approaches a $2 billion run rate. To support this growth, Intel raised its capital expenditure guidance to over $20 billion for 2026. The CEO also mentioned strategic collaborations such as co-developing next-generation security processors with Fortinet Inc., underscoring the momentum behind custom silicon initiatives.
Topics: Artificial Intelligence CapEx Investment Custom Silicon Market Semiconductor Manufacturing