Intel Stock Surges on Foundry Turnaround Progress
Shares of Intel have surged by over 220% in 2026, driven by strong demand for its CPUs and optimism around the foundry business. In Q2, revenue rose 25% year-over-year to $16 billion with a significant improvement in gross margin from 27.5% to 40.4%. The company's Intel Foundry division reported nearly $6 billion in revenue but still posted a $2.1 billion loss due largely to non-operational charges related to the CHIPS Act. The success of the foundry business hinges on its next-generation semiconductor fabrication process, known as Intel 14A, with risk production planned for 2027 and mass production expected in 2028. The company is positioning itself to challenge Taiwan Semiconductor Manufacturing (TSM) by securing large-scale customers like members of the Magnificent Seven. Intel's recent financial performance has been bolstered by strong operational results despite a high valuation, with Q3 guidance suggesting revenue could reach $16.8 billion.
Topics: foundry business gross margin improvement Intel revenue growth