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Intel Posts 25% Revenue Rise, Wins Tesla AI Chip Deal

7/25/2026

Summary

Intel Reports Surge

Intel reported Q2 2026 revenue of $16.1 billion, up 25% YoY, strongest growth in 15 years.
Data Center and AI revenue rose 59% to $6.3 billion as Foundry revenue grew 31% to $5.8 billion.
GAAP net loss was $11.0 billion after a $12.5 billion charge, resulting in non-GAAP net income of $2.2 billion ($0.42 per share).
Intel generated $7.0 billion cash from operations, forecast Q3 2026 revenue of $15.8-$16.8 billion, lifted 2026 capex to $20 billion, and pledged a €5 billion Xeon 6 expansion.

Summary

Intel Secures Tesla

Intel secured Tesla as a customer for its 14-nanometer 14A process, which will power Tesla’s “Terafab” AI chip project.
Intel’s planned Ohio chip-making plant remains delayed, highlighting difficulties in expanding U.S. semiconductor capacity.
The company holds about $30 billion in cash, a $10 billion credit line, and may conduct a future share sale.
A White House-brokered deal makes the U.S. government a major backer alongside Nvidia and SoftBank.

History

Historical Context

In 1995 Intel invested $1.5 billion in Arizona’s Fab 24, the first major U.S. semiconductor expansion in a decade, creating about 1,200 jobs and raising national capacity by roughly 30 percent. Today Intel courts Tesla for a 14-nm 14A process while the White House, Nvidia and SoftBank fund an Ohio fab, echoing the 1995 public-private model that now drives U.S. chip growth.

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Intel Reports Surge

Intel reported Q2 2026 revenue of $16.1 billion, up 25% YoY, strongest growth in 15 years.
Data Center and AI revenue rose 59% to $6.3 billion as Foundry revenue grew 31% to $5.8 billion.
GAAP net loss was $11.0 billion after a $12.5 billion charge, resulting in non-GAAP net income of $2.2 billion ($0.42 per share).
Intel generated $7.0 billion cash from operations, forecast Q3 2026 revenue of $15.8-$16.8 billion, lifted 2026 capex to $20 billion, and pledged a €5 billion Xeon 6 expansion.

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