Intel Reports Strong Data Center Revenue Growth but Stock Falls Amid GAAP Loss and Foundry Challenges
In Q2 2026, Intel reported a significant increase in data center revenue with its DCAI segment growing by 59%, marking an acceleration from the previous quarter's growth of 22%. Total company revenue rose 25% year over year—the fastest quarterly growth for Intel in more than 15 years. Despite these positive figures, Intel’s stock fell nearly 8% following a reported GAAP net loss of $11.03 billion due to a non-cash escrow charge related to the CHIPS Act. The company showed improvement across other segments as well: operating margins increased significantly and gross margins rose from 29.7% in Q2 2025 to 41.8%. However, Intel's foundry business remains a drag on performance with an $18 billion capital expenditure plan for the year and continued losses despite some progress. While data center growth is promising—especially as demand increases from AI applications—the ongoing financial strain of its foundry operations has led to investor caution.