Intel Stock Ends Week at $90 after Failing to Retake $100, Despite Improving Profitability
Intel stock briefly regained momentum after stronger Microsoft Azure growth revived confidence in semiconductor spending, but the rebound faded as investors refocused on Intel's heavy capital requirements, foundry losses and uncertain path toward sustainable profitability.
Quick overview
- Intel stock briefly gained momentum due to stronger Microsoft Azure growth but ultimately fell back as investors focused on the company's capital requirements and losses.
- Despite a 25% year-over-year revenue increase to $16.1 billion, Intel reported significant losses, with a net loss of approximately $11 billion.
- The company's operating margin has improved to 7.6%, indicating progress in controlling core operations, but investor confidence remains shaky due to ongoing challenges.
- Intel's heavy capital spending and competition from global semiconductor manufacturers add to the uncertainty surrounding its recovery strategy.
Intel stock briefly regained momentum after stronger Microsoft Azure growth revived confidence in semiconductor spending, but the rebound faded as investors refocused on Intel’s heavy capital requirements, foundry losses and uncertain path toward sustainable profitability.
Intel Stock Reverses Lower After Failing to Break $100
Intel shares ended the week under renewed pressure after failing to break above the important $100 level. INTC stock reversed lower on Friday and closed around $90, leaving the shares down approximately 2.5% for the week.
The pullback came despite a broader semiconductor rebound triggered by Microsoft’s stronger-than-expected Azure cloud results. The improved cloud outlook temporarily eased concerns that aggressive AI infrastructure spending could be slowing.
However, Intel continues to face company-specific challenges that make its recovery more complicated.
Operating Profitability Shows Significant Improvement
One of the more encouraging aspects of Intel’s turnaround is the sharp improvement in operating profitability.
The company’s trailing-twelve-month operating margin has improved to approximately 7.6%, compared with -8.3% during the comparable period a year earlier.
That represents a substantial reversal after operating margins deteriorated from approximately -4.4% three years ago to -8.3% before beginning their recovery.
The improvement suggests Intel is making progress in controlling its core operations.
However, investors remain focused on whether this progress can continue while the company spends heavily on manufacturing capacity and advanced semiconductor technology.
Strong Revenue Growth Still Masks Heavy Losses
Intel’s second-quarter results showed impressive top-line growth.
Revenue increased 25% year over year to $16.1 billion, representing the company’s strongest revenue growth in roughly 15 years.
Management expects third-quarter revenue between $15.8 billion and $16.8 billion, with reported EPS of approximately $0.31 and adjusted EPS of $0.38.
Yet profitability remains a major weakness.
Intel reported a loss attributable to shareholders of $2.16 per share, although adjusted EPS was positive at $0.42. Net losses narrowed to approximately $11 billion, compared with $12.9 billion a year earlier.
The improvement is encouraging, but the size of the loss remains difficult for investors to ignore.
Intel Stock Outlook Remains Uncertain
Intel’s latest results show clear operational improvement, particularly in revenue growth and manufacturing progress. However, the company still faces major obstacles, including large financial losses, limited external foundry adoption, heavy investment requirements, and rising global competition.
The return below $80 reflects a market that remains unconvinced that Intel’s recovery has reached a sustainable turning point. Until the company demonstrates stronger profitability and proves its foundry strategy can attract significant outside customers, investor confidence may remain under pressure.
INTC Chart Daily – Buyers Face the $100 Level As Resistance Now?
INTC stock has been bearish throughout July, dipping below 80 last night, but the quick reversal higher today indicates that investors are increasingly willing to accumulate shares at perceived value levels. While sustained upside momentum will require further confirmation, the structure has improved meaningfully, despite the recent pullback. The decline broke below the 100 daily SMA in green as well, but is back above it today.
Foundry Strategy Remains the Biggest Question
Intel Foundry remains central to the company’s long-term recovery strategy, but the business continues to consume substantial resources.
Foundry revenue increased 31% to approximately $5.8 billion, while 18A production improved significantly.
However, external demand remains limited. External foundry revenue was only around $293 million, or roughly 5% of total Foundry revenue.
The division also recorded an operating loss of approximately $2.1 billion.
This leaves Intel facing a difficult commercial challenge: it is investing heavily to build advanced manufacturing capacity while still needing to attract enough outside customers to make that capacity economically viable.
Capital Spending Creates Another Risk
Intel’s 2026 capital budget has risen above $20 billion, a significant commitment relative to trailing-twelve-month revenue of approximately $57 billion.
The spending is designed to rebuild Intel’s manufacturing capabilities and strengthen its competitive position.
The recently announced €5 billion expansion of its Leixlip manufacturing campus in Ireland is another example of the company’s long-term investment strategy.
These projects could ultimately improve Intel’s position in advanced semiconductor manufacturing, but they also increase pressure on cash flow and require successful execution.
Competition Adds to the Uncertainty
Intel’s turnaround is also occurring as global semiconductor competition intensifies.
China continues investing in domestic chip manufacturing and reducing reliance on foreign semiconductor technology. Increasing production capabilities could eventually create additional pricing and competitive pressure across the industry.
For Intel, that creates another challenge as it attempts to regain manufacturing leadership while simultaneously funding a costly transformation.
Q2 2026 Financial Results
|
|
GAAP |
Non-GAAP |
||||||||||
|
|
Q2 2026 |
Q2 2025 |
vs. Q2 2025 |
Q2 2026 |
Q2 2025 |
vs. Q2 2025 |
||||||
|
Revenue ($B) |
$16.1 |
|
$12.9 |
|
up 25% |
|
|
|
|
|
|
|
|
Gross margin |
40.4% |
|
27.5% |
|
up 12.9 ppts |
|
41.8% |
|
29.7% |
|
up 12.1 ppts |
|
|
R&D and MG&A ($B) |
$4.5 |
|
$4.8 |
|
down 6% |
|
$4.0 |
|
$4.3 |
|
down 8% |
|
|
Operating margin (loss) |
11.1% |
|
(24.7)% |
|
up 35.8 ppts |
|
17.2% |
|
(3.9)% |
|
up 21.1 ppts |
|
|
Tax rate |
(0.3)% |
|
(9.2)% |
|
up 8.9 ppts |
|
11.0% |
|
12.0% |
|
down 1 ppt |
|
|
Net income (loss) attributable to Intel ($B) |
$(11.0) |
|
$(2.9) |
|
n/m* |
|
$2.2 |
|
$(0.4) |
|
n/m* |
|
|
Earnings (loss) per share attributable to Intel—diluted |
$(2.16) |
|
$(0.67) |
|
n/m* |
|
$0.42 |
|
$(0.10) |
|
n/m* |
|
Outlook
Intel’s improving operating margin and strong revenue growth provide evidence that parts of the turnaround are working. Microsoft’s Azure results have also temporarily strengthened sentiment toward semiconductor spending.
Nevertheless, the failure to break $100 and the subsequent retreat toward $90 highlight continued investor caution.
Intel still needs to demonstrate that stronger revenue can translate into sustainable profitability, while its Foundry division must attract meaningful external demand and reduce its substantial losses.
Until those improvements become more consistent, INTC stock may remain vulnerable to renewed selling pressure despite the company’s improving operating performance.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
Save