Intel (INTC), AI Business Revenue 'Jumps' 22%...Wall Street Reacts to News of Escaping Deficit Swamp

▲ Intel (Intel, INTC)/AI generated image

Intel (Intel, INTC) is accelerating its counterattack in the semiconductor market by boosting its data center and artificial intelligence (AI) business revenue by 22%. With HSBC doubling its price target to $200, Intel's AI chips and advanced process strategy have captured investors' attention.

According to FXLeaders on July 7 (local time), Intel's Q1 2026 revenue increased by 7% year-over-year to $13.6 billion. Data Center and AI business revenue grew by 22% to $5.1 billion, leading the overall performance growth.

Non-GAAP earnings per share (EPS) were $0.29, exceeding market expectations, and the gross profit margin improved to 41%. However, the company recorded a net loss amid restructuring and one-time cost burdens, with EPS remaining at -$0.73.

Intel projected Q2 revenue to be between $13.8 billion and $14.8 billion. The next full earnings report is scheduled for July 23. While the average analyst price target is approximately $100, HSBC positively evaluated Intel Foundry's business and doubled its price target to $200.

Intel is also pursuing the construction of new factories in the U.S., with a new facility in Santa Clara included in the investment plans. It has signed contracts with Foxconn in the AI computer and server sectors and is supporting Syntiant, an AI chip company that has filed for an IPO. Syntiant produces edge AI chips used in earbuds, automobiles, and small devices.

The next-generation 18A process was also presented as Intel's core strategy. Intel is focusing its efforts on advanced semiconductor production technology that is smaller, faster, and more energy-efficient, aiming to launch 18A-based products in 2026.

[Article Key Summary]

-Intel's Q1 revenue increased by 7% to $13.6 billion, with Data Center and AI business revenue growing by 22% to $5.1 billion.

-HSBC positively evaluated Intel Foundry's business and doubled its price target to $200.

-Intel is expanding its AI computer and server collaborations and 18A process investments, pushing for the launch of next-generation products in 2026.

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