Intel INTC Stock Falls to $95 as Foundry Revenue Masks Weak External Demand despite Fastest Revenue Growth in 15 Years

Quick overview

Intel stock reversed an early earnings rally and fell around 5% to $95 as investors questioned whether strong revenue growth and improving foundry performance can overcome heavy losses, limited external foundry demand, and enormous capital requirements.

Intel Stock Falls 5% to $95 as Strongest Revenue Growth in 15 Years Fails to Impress Investors

Intel stock has reversed sharply after an initial post-earnings rally, falling around 5% to approximately $95 after briefly jumping from near $100 toward $110 in after-hours trading. The chipmaker reported its fastest revenue growth in 15 years, with second-quarter revenue rising 25%, but investors have quickly refocused on persistent losses, heavy capital spending, and concerns surrounding the company’s ambitious foundry strategy.

Intel Stock Gives Back Earnings Rally

The initial market reaction to Intel’s earnings appeared highly positive. Shares jumped toward $110 after the company reported quarterly revenue of $16.1 billion, up 25% year over year and ahead of expectations.

However, that optimism quickly faded.

The stock has since retreated toward $95, suggesting investors remain unconvinced that Intel’s improving top-line performance is enough to justify its valuation and long-term investment strategy.

The decline highlights a critical issue facing Intel: strong revenue growth is encouraging, but the company still needs to demonstrate that this growth can translate into sustainable profits and stronger cash generation.

Intel Foundry Revenue Rises, but External Customers Remain Limited

Intel Foundry remains one of the biggest reasons for caution.

Foundry revenue increased 31% to approximately $5.8 billion, while 18A wafer output rose more than 50% quarter over quarter. The company also said yields were ahead of internal targets, providing some evidence that its advanced manufacturing technology is progressing.

However, the financial contribution from external customers remains relatively small.

External foundry revenue was approximately $293 million, representing only about 5% of total Foundry revenue. This means Intel’s leading-edge 18A manufacturing business remains largely unproven as a third-party foundry platform.

The Foundry operating loss also narrowed to roughly $2.1 billion, but that remains a substantial financial burden.

For investors, the key question is whether Intel can attract enough external customers to transform its foundry operations into a profitable business. Until that happens, the company’s manufacturing ambitions could continue requiring significant capital.

Strong Revenue Growth Masks Continuing Losses

Intel reported second-quarter revenue of $16.1 billion, representing a 25% year-over-year increase and its strongest growth rate in many years.

However, the company’s bottom line remains under pressure.

Intel reported a loss attributable to the company of $2.16 per share, while non-GAAP EPS came in at $0.42.

The reported net loss narrowed to approximately $11 billion from $12.9 billion a year earlier. However, diluted loss per share stood at $2.16, compared with $0.67 in the second quarter of 2025.

The figures illustrate the complicated nature of Intel’s recovery. Revenue is improving rapidly, but significant losses and high investment requirements continue to weigh on the financial outlook.

Q3 Guidance Provides Some Support

Intel expects third-quarter revenue to fall within a range of $15.8 billion to $16.8 billion.

The company is forecasting reported EPS of $0.31 and non-GAAP EPS of $0.38.

The guidance suggests management remains confident that the revenue recovery can continue. However, the stock’s negative reaction indicates that investors may be looking for stronger evidence of sustainable profitability rather than revenue growth alone.

AI and Data Centre Strategy Expands

Intel continues to invest heavily in AI infrastructure and data-centre technology.

The company has introduced new rack-scale AI infrastructure and inference solutions built around its Xeon processors. It also worked with SambaNova and Foxconn on production-ready infrastructure designed for inference and agentic workloads.

Intel launched Xeon 6+, its first server-class product based on the Intel 18A process, while more than 130 customers are reportedly adopting or testing its latest Core Ultra Series 3 and Core Series 3 processors for edge AI and robotics applications.

These initiatives could strengthen Intel’s position in emerging computing markets, but competition remains intense.

Heavy Investment Creates Long-Term Execution Risks

Intel’s manufacturing strategy requires enormous capital commitments.

The company recently announced a €5 billion expansion of its Leixlip manufacturing campus in Ireland, supporting production of advanced processors including next-generation Xeon 6 chips.

The investment is intended to strengthen Intel’s European manufacturing footprint and contribute to a more diversified global semiconductor supply chain.

However, building advanced manufacturing capacity does not automatically guarantee financial success. Intel must ultimately prove that its facilities can produce competitive products at attractive margins while generating sufficient returns on invested capital.

The company’s €5 billion Ireland investment therefore represents both an opportunity and a significant execution challenge.

Competition Adds Further Pressure

Intel also faces intense competition from AMD and other global semiconductor companies.

AMD has gained ground in the data-centre market, increasing pressure on Intel’s historically important server business. At the same time, expanding semiconductor manufacturing capacity globally could contribute to pricing pressure if supply growth eventually outpaces demand.

The company’s ability to regain market share while simultaneously building a profitable foundry business remains uncertain.

INTC Stock Returns Below $100

From a technical perspective, Intel’s return below the $100 level signals continued uncertainty.

The stock has repeatedly attracted buyers near this psychological support zone, but recent rebounds have lacked strength as investors remain hesitant.

A sustained recovery would likely require stronger earnings results, clearer progress on 18A manufacturing, and evidence that Intel can compete more effectively against AMD and other semiconductor rivals.

For now, Intel’s turnaround story remains promising but unproven.

The company’s investments in Ireland and advanced manufacturing provide long-term potential, but investors appear unwilling to overlook near-term risks. Until Intel demonstrates consistent execution, the stock may continue facing volatility around the $100 level.

INTC Chart Daily – Finding Support at the 100 SMA

The speed of the upside move and the clear break above $100 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.

Q2 2026 Financial Results

Intel Stock Faces a Critical Test

The sharp reversal in Intel stock following its earnings release shows that investors remain cautious despite the company’s impressive revenue growth.

The 25% increase in quarterly sales is a meaningful improvement, but the limited scale of external foundry revenue, multibillion-dollar operating losses, and aggressive capital spending remain significant obstacles.

The stock’s move from approximately $100 to $110 and then down toward $95 reflects the market’s conflicting view of Intel’s turnaround.

For now, Intel has demonstrated that its revenue engine can recover. The more difficult challenge will be proving that its foundry investments, AI strategy, and manufacturing expansion can eventually deliver sustainable profitability and attractive shareholder returns.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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