Intel significantly increases capital expenditures to US$20 billion, AI demand drives performance beyond expectations
After announcing strong financial results for the second quarter, it announced an increase in its capital expenditure plan for 2026 to cope with continued growth demand driven by AI. The financial report shows that in the second fiscal quarter ended June 27, Intel’s revenue reached US$16.1 billion, a year-on-year increase of 25.4%, setting the strongest quarterly revenue growth since 2011. Under non-GAAP, net profit was US$2.2 billion and earnings per share were US$0.42, achieving a turnaround and turning a profit, much higher than market expectations of US$0.21. Gross profit margin increased to 41.8%, a significant increase of 12.1 percentage points compared with the same period last year. Faced with strong customer demand signals that exceed supply capabilities, Intel has significantly raised its full-year capital expenditure forecast for 2026 to more than $20 billion from the previous $18 billion. Chief Financial Officer David Zinsner said that capital expenditures in 2027 will be "significantly higher" than 2026 levels, and the vast majority of investments will be invested in the domestic manufacturing network in the United States. The company has signed a number of long-term agreements with customers for a period of 3 to 5 years, covering data center CPU and XPU chips. The company expects third-quarter revenue to be between $15.8 billion and $16.8 billion, and adjusted earnings per share are expected to be $0.38, both higher than analysts' expectations.