Intel Stock Drops as Investors Question Its Massive Expansion Plan
TLDR
- Intel shares fell 7.9% despite second-quarter revenue rising 25% to $16.1 billion.
- Data Center and AI generated about 71% of Intel’s total revenue growth during the quarter.
- Intel raised its 2026 capital expenditure plan to more than $20 billion, increasing investor concerns about cash flow.
- Intel Foundry recorded a $2.09 billion operating loss, while external customers contributed only about 5% of foundry sales.
- The company expects third-quarter revenue of about $16.3 billion and adjusted earnings of $0.38 per share.
Intel Corporation (INTC) shares closed Friday at $92.32, down 7.9%, after early gains faded. The decline came despite stronger second-quarter results and continued demand from data centers supporting artificial intelligence systems.
Intel stock reacted to concerns that rising investment could limit near-term cash gains. Revenue increased 25% from a year earlier to $16.1 billion. Adjusted earnings reached $0.42 per share, while non-GAAP net income totaled $2.2 billion.
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