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Intel revenue surges 25% as AI demand drives rebound
Intel’s revenue rose 25% in Q2 2026, led by a 59% jump in data center and AI sales, while memory shortages threaten PC demand.
Image: Gizmodo
Intel posted its fastest revenue growth in 15 years in the second quarter of 2026, as demand from AI data centers helped revive the once-dominant chipmaker.
Revenue rose 25% year over year, while Intel’s data center and AI business jumped 59%, according to the company’s earnings report. The gains come after years of decline in which Intel lost ground to rivals, particularly Nvidia. Former CEO Pat Gelsinger was effectively ousted in December 2024, Lip-Bu Tan became CEO in March 2025, and the Trump administration took a 10% stake in Intel in August.
The administration has reportedly helped facilitate deals between Intel and AI companies including SpaceX, Apple, and Nvidia, reinforcing the company’s position in the expanding AI infrastructure market.
“Our data center-AI group delivered a solid quarter. Demand accelerated across cloud and enterprise as customers increasingly recognize the critical role that CPUs in general and x86 CPUs in particular play in the AI infrastructure.”
Memory shortages weigh on PC sales
Intel’s traditional PC chip business also grew, though far more slowly. Revenue from its client computing and physical AI group increased 13% from the same period last year.
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That business is facing pressure from an AI-driven memory shortage. Chipmakers have redirected capacity toward high-bandwidth memory for data centers, restricting supplies for consumer devices such as PCs and smartphones. Prices have risen while sales have weakened: worldwide PC shipments recorded their first decline in two years, according to International Data Corporation research published earlier this month, and global smartphone shipments reached a record low this year.
Intel expects the shortage to continue affecting PC demand through at least the end of 2026.
“We expect PC consumption to be sub-seasonal in the second half of the year, and down low double digits percent for all of 2026, impacted by rising memory prices and constraints.”
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via Gizmodo
