Intel Reports Record Revenue Growth Amid $11.3 Billion Loss

Intel reported a net loss of $11.3 billion over the past year, largely due to non-cash accounting charges including a $12.5 billion mark-to-market charge related to shares held in escrow under the U.S. government's CHIPS Act. Despite the annual loss, the company achieved a 25% year-over-year revenue increase to $16.1 billion in the second quarter, with its data center and artificial intelligence segment growing 59% to $6.3 billion.

CEO Lip-Bu Tan described the current period as the strongest revenue growth for the company in more than 15 years. To fund its turnaround and foundry expansion, the company sold $20 billion of new stock at $95 per share this month and raised its 2026 capital spending outlook to over $20 billion. While shares have risen 329.59% over the past year, some investors have raised concerns regarding dilution following a $15 billion common stock offering announced on August 10.

The company's foundry arm continues to operate at a loss, reporting a $2.1 billion operating loss for the second quarter. However, the foundry ramp is currently performing 25% above target, and the company forecasts a break-even point for the division by 2027. Future growth remains dependent on the Intel 18A ramp and the stability of the Intel 14A roadmap.