Semiconductor giant Intel (INTC, Financials) designs processors and manufactures innovative chips. The business boosted its 2026 capital expenditure projection to more than $20 billion after better-than-expected second-quarter results, citing continuing demand for AI infrastructure.
The company projected third quarter revenue of $15.8 billion to $16.8 billion, and non-GAAP earnings of $0.38 per share. Intel estimates a mid-point non-GAAP gross margin of 42% in the range.
Revenue in the second quarter was $16.1 billion, while earnings per share (non-GAAP) was $0.42. Non-GAAP gross margin was 41.8% driven by increasing product demand, improved manufacturing yields and better pricing.
Intel said demand is higher than available supply as the industry grapples with shortages of wafers, memory and substrates.
The business also provided updates on its manufacturing roadmap, including risk production of Intel 18A-P and plans to start risk production of its 14A process in the second half of 2027. Management said it is dedicated to producing 14A in big volumes in 2028.
Intel finished the quarter with roughly $30 billion in cash and short-term investments, providing it with flexibility to support higher capital spending.
Investors will now be watching to see if Intel can reduce supply bottlenecks, meet its production strategy and translate growing AI demand into sustainable revenue growth.