Intel Beats Q2 Estimates and Raises AI Capital Spending

Intel reported second-quarter revenue of $16.13 billion and adjusted profit of 42 cents per share, both of which exceeded analyst expectations. The company forecast third-quarter revenue between $15.8 billion and $16.8 billion, citing high demand for data-center CPUs driven by agentic AI. In response to this growth, Intel increased its 2026 capital expenditure forecast from $18 billion to $20 billion, with additional increases expected next year.

CEO Lip-Bu Tan announced a full commitment to high-volume production of the 14A manufacturing technology by 2028. He highlighted momentum in customer engagements, specifically a deal with Tesla for the Terafab AI chip project. Following these announcements, Intel shares rose between 8% and 11% in after-hours trading.

CFO David Zinsner confirmed that the company holds approximately $30 billion in cash and a $10 billion line of credit. While a future share sale remains a possibility to fund growth, Zinsner noted the company is currently planning output based on long-term agreements.