Intel's post-earnings pullback highlights tech ETFs with sizable exposure that can offer diversified access to its long-term potential.
The biggest AI winners so far have been companies that made AI model training possible. Think of Nvidia, for example. Today, there is strong evidence to suggest that AI technology is moving from model training to inference. Industry data from Grand View Research confirms this. According to several industry reports, inference spending will account for 80% to 90% of lifetime AI costs. According to Deloitte, inference accounted for just one-third of AI costs in 2023.
Shares in major U.S. chip and memory companies, including Micron, Sandisk, and Intel, are sinking this morning in premarket trading after the stock prices of similar companies in Asia got hammered hard.
Intel and AMD shares came under heavy selling pressure on Tuesday as investors reassessed the outlook for the semiconductor industry amid China's rapid advances in memory chips and artificial intelligence infrastructure. Intel INTC stock fell about 6%, while AMD declined roughly 8%, extending a broader selloff across global semiconductor stocks.
AI chip and memory leaders MU, INTC and TSM stand out for August as AI demand, growth and targets support upside.
Intel (INTC) just handed the semiconductor sector a preview of what's driving the AI trade in mid-2026 – and it wasn't subtle. A blowout quarter, a stock that fell anyway, and a supply chain that can't keep pace with demand.
Zacks.com users have recently been watching Intel (INTC) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Intel Corporation is regaining semiconductor leadership, driven by rising x86 CPU demand and enterprise AI adoption. INTC's Data Center & AI segment posted 59% growth, fueled by Xeon 6 CPUs. Long term growth may be supported by strategic partnerships with Alphabet and potentially Apple. Significant capital investments are planned through 2028 to scale 14A and 18A process technologies, supporting long-term growth despite near-term cash outflows.
Intel Corporation has staged a truly remarkable turnaround, outperforming Nvidia and AMD amid the AI agent inflection driving a momentous CPU-led data center growth story. INTC's revenue surged over 25% with gross margins at 41.8%, and data center revenue under DCAI rose nearly 60%, reflecting strong execution and market optimism. Despite a recent 40% pullback from its $140 peak, INTC's valuation has normalized to a relatively lower 56x forward earnings, with technicals signaling a key support zone near $90.
Two large-cap stocks are approaching the $500 billion market capitalization milestone in 2026 after demonstrating strong growth potential.
Intel Corporation delivered a standout Q2, with 25% YoY revenue growth to $16.1B and non-GAAP EPS of $0.42, surpassing expectations. Data Center and AI (DCAI) revenue surged 59% YoY to $6.3B, affirming INTC's credible participation in the AI infrastructure cycle. Non-GAAP gross margin improved to 41.8%, with Q3 guidance maintaining revenue and margin momentum, but capital intensity and foundry execution risks remain.
Intel posted a strong Q2 earnings beat, driven by 25% year-over-year revenue growth, primarily from its AI data center segment. Intel's Data Center and AI (DCAI) business delivered 59% year-over-year revenue growth while driving significant operating income growth for the company. Despite top line momentum, Intel continues to lose billions in its foundry business annually which investors seem to discounting.