AI demand propels Intel to strongest Q2 revenue growth since 2011

Intel beat expectations in Q2 2026 with revenue of $16.1 billion (up 25%) and 42-cent adjusted EPS, delivering the fastest quarterly revenue growth since 2011 as AI-driven demand boosts data-center CPU sales. The company guided for Q3 revenue of about $15.8‑$16.8 billion and 38-cent EPS, helped by a 59% rise in data-center revenue to $6.3 billion, a 13% rise in client computing to $8.9 billion, and a 31% increase in foundry revenue to $5.8 billion with gross margin at 42%. Intel is pursuing long-term server-CPU agreements to lock pricing amid supply constraints and is ramping capex to expand manufacturing capabilities, including progress on its 14A process. The stock has surged this year but remains volatile, with Fortinet named as a foundry customer and AI infrastructure demand underpinning the outlook.