Intel Raises 2026 Capital Spending to Over $20B Following Strong Q2 Earnings

According to Goldman Sachs, Intel raised its 2026 capital expenditure guidance from approximately $17 billion to over $20 billion following better-than-expected second-quarter earnings, signaling a major investment cycle in advanced chip manufacturing and AI infrastructure.

Intel reported Q2 revenue of $16.1 billion, up 25% year-over-year—marking the company's highest single-quarter growth in 15 years. Its Data Center and AI business delivered $6.26 billion in revenue, surging 59% annually. Goldman Sachs analysts noted the company plans to sustain heightened investment into 2027, with capital equipment expenditure expected to rise roughly 40% as Intel scales 18A and 14A advanced manufacturing processes. However, Goldman maintained a Neutral rating and $150 price target, flagging long-term transformation risks, including whether advanced process yields will meet targets, external foundry customers can be secured, and massive capital spending will generate adequate returns.