Intel results to test if AI-fueled rally has room to run

Intel results to test if AI-fueled rally has room to run Reuters Wed, July 22, 2026 at 12:14 PM GMT+2 2 min read INTC AAPL July 22 (Reuters) - Intel's results on Thursday will show whether the American chip icon has the numbers to back a Wall Street rally that has ‌sent its shares nearly three times higher this year, as its turnaround ‌push wins over investors and the AI buildout powers demand. Analysts expect the company to report its fastest quarterly revenue ​growth in about six years thanks to a demand rebound for central processors that are increasingly used to help power AI agents. Investors are also eager for details on potential new customers for its contract manufacturing business, which has shown growing traction with deals including a ‌Tesla tie-up.

• Among the biggest ⁠questions for Intel is a potential deal to manufacture processors for Apple that U. S. President Donald Trump announced in April but neither ⁠company has confirmed.

• Winning a contract would boost both Intel's foundry business and its reputation as a contract manufacturer. • Intel stock has declined more than 25% from its record close on ​June 22, ​amid a broader selloff in chip stocks. It ​remains 185% higher for the year.

• ‌While AI has boosted demand for Intel's CPUs, the company is grappling with weaker demand from the PC market and margins that remain well below historical highs. • "We admit to feeling better about the company than we have in some time as both the market and narrative grow more supportive, though fundamentals overall still remain somewhat on the challenging ‌side," Bernstein analysts said. • Last quarter, tight capacity ​allowed Intel to sell chips it had not expected ​to move, including shelved legacy and ​lower-spec products.

• The chipmaker is expected to report second-quarter revenue of $14. 42 ‌billion, 12. 1% higher from a year earlier, ​with adjusted earnings of ​21 cents per share, according to data compiled by LSEG.

• Its data center and AI segment is expected to grow 36. 4% to $5. 37 billion.

• Adjusted gross profit ​margin is expected to come ‌in at 38. 8%, which TD Cowen analysts have said remains pressured by ​heavy foundry investments and the costs of ramping new manufacturing processes.