Intel Reports $11 Billion Second-Quarter Loss as It Accelerates Foundry Build-Out

Overview

• Intel disclosed a $11 billion net loss for the second quarter, a swing from a $2.9 billion loss a year earlier that company filings attribute to large capital spending, higher R&D and accounting entries related to reorganizing Intel Foundry.
• Revenue rose to $16.1 billion, up 24.8% year over year and the largest revenue growth the company has reported in over 15 years, and adjusted earnings per share were $0.42, beating FactSet analyst estimates.
• Management said it is increasing investment in equipment and substrates for AI workloads and formalized a €5 billion program to modernize and expand facilities to strengthen Intel Foundry's operational autonomy.
• Intel gave third-quarter guidance of $15.8 billion to $16.8 billion in revenue and $0.31 adjusted EPS, signaling management's confidence in near-term commercial momentum despite the GAAP loss.
• Market reaction was mixed after the release, with shares climbing in after-hours trading before closing lower, and the company's spending push could reshape its competitiveness in advanced packaging, ASICs and foundry services.