Intel NASDAQ:INTC raised its capital spending plans after another quarter of better-than-expected results, saying demand for its processors continues to outstrip supply as AI infrastructure investment accelerates.
The chipmaker reported second-quarter revenue of $16.1 billion, non-GAAP earnings of $0.42 per share and a 41.8% gross margin, all above its own guidance. For the third quarter, Intel expects revenue of $15.8 billion to $16.8 billion and non-GAAP EPS of $0.38.
Intel designs CPUs for PCs, servers and AI infrastructure while also building a contract chip manufacturing business. Management said production on Intel 7, Intel 3 and 18A exceeded internal targets, while 18A-P entered risk production. It also reaffirmed plans for 14A risk production in the second half of 2027 and a high-volume ramp in 2028.
The company now expects 2026 capital spending to exceed $20 billion, reflecting stronger customer demand and continued investment in advanced manufacturing and packaging. Management acknowledged that shortages of wafers, memory and substrates remain the biggest constraint on growth.