Intel Raises 2026 Capex to $20B as Data Center AI Revenue Surges 59% to $6.3B

According to Intel's Q2 2026 earnings reported Thursday, July 23, the company's data center and AI (DCAI) segment generated $6.3 billion in revenue with 59% year-over-year growth, driving overall Q2 revenue to $16.1 billion, up 25% annually and exceeding analyst expectations of $14.42 billion. CEO Pat Gelsinger highlighted unprecedented computing demand driven by AI and noted that CPU demand has outpaced Intel's growing supply capacity, restoring the company's pricing power.

In response to surging demand, Intel raised its 2026 full-year capital expenditure guidance from $18 billion to $20 billion, with plans to further increase investment in 2027 to expand Intel 3 process capacity and photomask manufacturing. The company's gross margin expanded to 41.8% from 29.1% year-over-year, while the foundry business posted $5.8 billion in quarterly revenue, up 31% annually, with advanced process 18A supporting Panther Lake processor production at higher-than-expected yields.