Intel said that both its 2026 second-quarter revenue and Data Center and AI revenue increased.
The potential for manufacturing cooperation related to Apple, SK hynix, and the Terafab also affected the stock price, but reported discussions do not immediately mean mass-production contracts.
This is why it is difficult to assess the recovery in earnings and the potential transition of the foundry business at the same pace.
3-Line Summary
1. Intel’s second-quarter revenue was 161 billion dollars
2. Data Center and AI revenue increased 59%
3. Manufacturing contracts do not yet mean mass production
Data Center and AI Revenue Reaches 63 Billion Dollars, Profitability Also Improves
According to Yahoo Finance, Intel’s 2026 second-quarter revenue was 161 billion dollars, up 25% from the same period a year earlier. As demand for server central processing units (CPUs) increased, Data Center and AI revenue reached 63 billion dollars, up 59%.
As revenue grew faster than costs, the adjusted gross margin rose from 29.7% in the same quarter a year earlier to 41.8%. The adjusted operating margin also shifted from a 3.9% loss in the second quarter of 2025 to a 17.2% profit, while adjusted earnings per share turned from a loss of 0.10 dollars the previous year into a profit of 0.42 dollars.
In the same quarter, Intel also announced a new AI platform based on Xeon processors. Looking only at the results, it can be said that AI demand had a positive effect on Intel’s server product sales and profitability during the quarter.
Talks with Apple and SK hynix Are Not Confirmed Production Volumes
Startup Fortune reported that Intel’s stock rose 4% following reports related to SK hynix and closed at 101.05 dollars on September 16. The report said that SK hynix was in discussions with Intel about producing memory chips in the United States, and that leasing part of Intel’s Ohio facility or a joint venture involving cloud companies had been discussed.
However, SK hynix said it was only reviewing ways to strengthen its memory business and that nothing had been decided. The economic feasibility of using the Ohio facility and the actual production structure have also not been determined. Expectations that this could have significance for the memory supply chain and Intel’s foundry business should be distinguished from confirmed contracts and production.
The reports related to Apple are similar. The Wall Street Journal and Reuters reported the possibility of a preliminary manufacturing agreement, but the chips’ intended products, shipment timing, and production volume have not been confirmed. Intel was also reported not to have commented on potential cooperation with Apple.
18A Yield and Securing External Customers Remain Challenges
Startup Fortune reported that Intel’s 18A process yield of 85% and expectations of securing external customers had increased expectations for a foundry transition. Elon Musk’s mention of a plan to use Intel’s 14A process for the Terafab project was also discussed in the same context.
However, Terafab is a plan for a large-scale advanced semiconductor factory, and explanations also noted that actual construction and production would require a long time and enormous costs. Intel’s second-quarter improvement in results has already been confirmed numerically, but how many semiconductors external customers will produce through Intel’s process has not yet been determined. The most important distinction in this trend is between results confirmed through AI demand and expectations regarding future production contracts.
References
Tags #Intel #INTC #IntelStock #Semiconductors #AISemiconductors #DataCenter #Xeon #Foundry #18A #14A #AppleSemiconductors #SKhynix #OhioFactory