Intel Q2 Earnings Rise; Foundry Mixed

Intel reported Q2 revenue of $16.1 billion, with Data Center and AI up 59% year over year to $6.3 billion, signaling strong AI-driven demand. Foundry revenue rose 31% to $5.8 billion, but external Foundry revenue remained unprofitable and declined by $2.1 billion in the quarter, while efficiency gains improved costs. For Q3, the company guided revenue of $15.8 billion to $16.8 billion and reiterated its 14A manufacturing roadmap for 2028, with CEO Lip-Bu Tan stressing Foundry's strategic value. Separately, Intel highlighted AI infra strength across CPU, ASIC, and packaging, and announced plans to invest €5 billion to expand manufacturing in Ireland, creating jobs. Despite a $12.5 billion mark-to-market loss on escrowed shares, Intel posted GAAP net loss but non-GAAP earnings of $0.42 per share, supported by stronger margins and roughly $7 billion in cash flow. The results reflect a shift toward AI workloads and ramping 14A processes while expanding global manufacturing footprint.