Intel's turnaround under CEO Lip-Bu Tan gains steam with another strong quarter

Breaking news from the markets: Shares of Intel moved higher after the chipmaker reported strong quarterly results and provided an upbeat third-quarter outlook. We expect more gains ahead under the guidance of CEO Lip-Bu Tan. Revenue in the second quarter increased 25% year over year to $16.

1 billion, exceeding the LSEG-compiled consensus estimate of $14. Non-GAAP earnings per share (EPS) swung to a 42-cent profit from a 10-cent loss one year ago, beating the LSEG estimate of 21 cents. Intel was up roughly 4% in after-hours trading, bringing it to around $104 per share.

Economic Details

It traded as high as about $113 in reaction to the results. INTC 1Y mountain Intel 1-year return Bottom line It's hard not to be impressed by Lip-Bu Tan, who became CEO in March 2025 and has already changed the company's culture while transforming it from a money loser to a profitable, growing operation. Along the way, Intel is regaining investor trust after years of disappointment.

To be fair, part of that success is tied to the incredible demand for AI infrastructure. Customers can't get enough of its x86 CPUs to run agentic AI tasks. The advanced packaging business has become strategically important in the AI era, connecting systems of multiple smaller chips so they act like a single chip.

And the foundry business provides a strategic advantage, allowing Intel to produce its own AI CPUs without relying on industry leader Taiwan Semiconductor Manufacturing Company (TSMC). With these tailwinds at its back and under disciplined leadership, Intel exceeded its own revenue guidance by $1. 8 billion, and more than doubled its own Non-GAAP EPS forecast, reporting $0.

Analyst Views

42 versus the company's $0. One slight disappointment this evening was that the company did not announce any major customers for its foundry. Several big names, including Apple , have been rumored to be partnering with Intel, but no formal deals have been announced.

We fully expect deals will be announced as Intel shows the strength of its manufacturing technology. Another thing to monitor is capital expenditures. Citing strong customer demand signals, Intel now expects capex to be more than $20 billion in 2026.

That's an increase of roughly $3 billion from prior expectations. And for 2027, the company expects capex to increase significantly as the company invests across its U. Capex has become a dirty word among tech investors because the more hyperscalers spend, the more their stocks fall due to uncertainty about the return on those investments.

Financial markets are tracking the development closely as investors assess the likely impact.