The chipmaker reported second-quarter revenue of $16.1 billion, up 25% year-over-year and well above analysts’ forecasts. Adjusted earnings came in at $0.42 per share, compared with a loss a year ago, marking another sign of Intel’s turnaround under CEO Lip-Bu Tan.

“We delivered the strongest revenue growth in more than fifteen years,” Tan said.

The biggest driver was Intel’s Data Center and AI business, where revenue jumped 59% from a year earlier to $6.3 billion. The company said growing demand for AI workloads is increasing the need for high-performance CPUs alongside AI accelerators.

Other parts of the business also outperformed:

• Client Computing revenue rose 13% to $8.9 billion, helped by growing demand for AI PCs, which now account for roughly two-thirds of Intel’s PC portfolio.
• Foundry revenue climbed 31% to $5.8 billion, while adjusted gross margin reached 41.8%, exceeding the company’s own guidance.

Looking ahead, Intel issued a stronger-than-expected forecast for the current quarter. The company expects:

• Revenue of $15.8 billion to $16.8 billion.
• Adjusted EPS of $0.38, above Wall Street estimates.
• Gross margin of around 42%.

Management also said it is increasing investment despite a challenging industry backdrop. Intel now expects to spend more than $20 billion on capital expenditures in 2026, up from its previous $18 billion forecast, with spending expected to increase further in 2027.

Still, the company acknowledged some challenges. CFO Dave Zinsner warned that rising memory chip prices are likely to pressure the PC business in the second half of the year, while management expects consumer PC demand to remain softer than usual.

Intel’s shares have nearly tripled this year, although they remain around 30% below their June 22 high after a broader pullback in semiconductor stocks. Investors have become more cautious as questions grow over whether the pace of AI hardware spending can be sustained.

For investors, Intel’s results suggest the company’s turnaround is gaining momentum, particularly in AI and data centres. The next key test will be whether it can maintain that growth while navigating higher component costs and proving it can attract major external customers to its foundry business.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Intel Posts Strongest Revenue Growth in 15 Years as AI Demand Lifts Outlook first appeared on Finblog.

The stock is now up more than 120% this year, capping off one of the most dramatic recoveries in the tech sector. Just months ago, the story was very different. Intel had lost a significant portion of its value and was seen by many as falling behind in the AI race.

Now, the narrative has flipped.

“A year ago, the conversation was about survival… today it’s about scaling to meet demand,” CEO Lip-Bu Tan said, highlighting how quickly sentiment has changed.

What’s driving the surge

The biggest catalyst is AI. While GPUs from companies like Nvidia dominate AI training, Intel is benefiting from a different trend.

AI applications still rely heavily on CPUs, especially for tasks like running software agents and handling data processes inside data centers.

That shift is already showing up in the numbers. Intel’s data center business jumped over 20% year-over-year, beating expectations and signaling renewed demand.

A turnaround story in motion

This rally is not just about one quarter. Several factors have helped rebuild investor confidence:

• A new CEO focused on cost control and execution
• Strong backing from major players, including government and industry investments
• Progress in chip manufacturing technologies
• New partnerships with companies like Microsoft and Amazon

Together, these moves have repositioned Intel as a serious player in the AI era again.

Still something to prove

Despite the momentum, questions remain. Intel still needs to show it can compete long term in advanced chip manufacturing and win major external customers.

The next generation of its technology will be critical in proving whether this comeback is sustainable.

Intel’s rally is one of the clearest signs of how powerful the AI boom has become.

A company once seen as falling behind is now back in focus, driven by the same force reshaping the entire tech industry. For investors, the message is simple: In the AI era, even old giants can make a comeback.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Intel Stock Soars 24% in Biggest Jump Since 1987 first appeared on Finblog.

The selloff came after Intel stock had surged nearly 50% in the past month, driven by optimism around artificial intelligence demand, fresh government support, and the launch of its new Panther Lake processors. Instead of confirming that momentum, the company delivered weaker-than-expected guidance for the first quarter.

While Intel beat estimates for the fourth quarter, it warned that internal supply constraints are limiting its ability to meet demand for server chips used in AI data centers. Analysts said the shortages point to deeper operational issues inside Intel’s manufacturing network.

“It almost turned into a meme stock for a bit,” Bernstein analyst Stacy Rasgon said. “A run like that going into earnings means you need a perfect report.”

Intel CEO Lip-Bu Tan said the company is working to improve efficiency and output at its factories, but investors remained cautious. By the close, shares fell to $45.07, marking Intel’s worst single-day drop in years.

Beyond the near-term miss, concerns are growing over Intel’s long-term strategy. The company continues to lose market share to rivals AMD and Arm, while its ambitious foundry turnaround still lacks major outside customers.

“Intel stock has been difficult because it’s not a clean story,” HSBC analyst Frank Lee said, adding that rebuilding the manufacturing business will take years.

Intel expects to announce customers for its next-generation 14A process in late 2026 or early 2027, with meaningful revenue unlikely before 2028.

For now, Friday’s collapse is a reminder that Intel’s comeback remains uncertain — and far from finished.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

The post Intel Crashes 17% as Turnaround Hopes Meet Reality first appeared on Finblog.

Intel, now partly government-owned under the CHIPS Act subsidies, faces scrutiny over why it would even consider tools from a company whose overseas divisions are accused of supporting Beijing’s military technology efforts.

Intel declined to confirm the testing but said it complies with all US regulations. ACM acknowledged deliveries of several tools to US chipmakers but denied posing any national security risk, stressing that its US operations are “bifurcated and isolated” from its Shanghai branch.

China Ties Run Deep

Founded in 1998 by David Wang, who holds both American citizenship and Chinese permanent residence, ACM conducts most of its research and development in China.
Its clients include SMIC, YMTC, and CXMT, all companies flagged by Washington for military affiliations. According to ACM’s own filings, SMIC alone accounts for 14% of its total sales.

In 2023, ACM opened a new facility in Hillsboro, Oregon, just a mile from Intel’s flagship R&D plant. A hedge fund report by Kerrisdale Capital suggested the facility was built primarily to strengthen ACM’s relationship with Intel, noting multiple tool qualifications and deliveries since 2023.

Washington’s Security Alarm

China hawks in Washington reacted sharply to the revelation. Chris McGuire, former National Security Council official, warned:

“Chinese tools could easily be remotely or physically manipulated by Beijing to degrade or even halt US chip production. US firms should play no part in helping China improve its chipmaking tools.”

Lawmakers from both parties have already reintroduced legislation that would ban subsidized US chipmakers from using Chinese equipment in government-backed expansion projects.

The Chinese embassy dismissed the backlash, saying, “Normal trade and economic cooperation between companies should not be politicized.”

Strategic Stakes

ACM remains a small player globally, with just an 8% share of the cleaning-tool market, but its ambitions are rising fast. Chinese toolmakers have been expanding their global footprint since 2015, and US policymakers fear that their entry into American fabs could undermine national resilience in chip manufacturing.

For Intel, already under pressure after President Trump publicly questioned CEO Pat Gelsinger’s China ties, the optics could hardly be worse.
With national security, supply chains, and geopolitics colliding, the world’s most advanced chip race may now depend on where Intel draws the line.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: US Treasury’s Bessent: AI Will Be the Single Biggest Driver of Economic Growth

AI Fears Spark Rotation Away from Big Tech: Markets Find New Leaders

The post Intel Tested Tools From China-Linked Firm With Sanctioned Units first appeared on Finblog.

This news comes amid a flurry of other Intel funding moves: Nvidia recently invested $5 billion for a 4% stake, SoftBank poured in $2 billion, and the U.S. government itself holds 10% after a direct stake.

What Intel Is Up To

Why TSMC?: Intel’s foundry ambitions have struggled to gain traction. Partnering with or investing in TSMC could give it access to proven manufacturing scale and expertise. The WSJ report says Intel is exploring ways to bring in external partners to support its turnaround.

Apple in the mix: Intel has also approached Apple for a potential investment, per Bloomberg and other sources. While Apple normally relies on TSMC, diversifying its chip supply chain amid geopolitical risk might make this interesting.

Recent backing helps the case: The momentum behind Intel’s revival has grown with its recent financing: Nvidia’s $5B injection, SoftBank’s earlier funding, and the U.S. government’s backing.

Historical talks: Earlier this year, there were reports that Intel and TSMC had discussed forming a joint venture, with TSMC taking as much as 20% in a new foundry entity.

Big challenges ahead: Even with this news, Intel faces hurdles: integrating technology, aligning manufacturing strategies, negotiating IP rights, and proving that its foundry business can compete with TSMC’s maturity and cost efficiency.

Intel is showing its hand, it’s no longer just asking for survival funds, but courting partners to rebuild its foundry strength. If either TSMC or Apple comes on board, it could be a game-changer. But this is still early stage — how deals are structured, who controls IP, and how the economics stack up will determine whether Intel’s revival becomes real or remains hopeful.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related:

Nvidia Stakes $5 Billion in Intel: A Strategic Revival for the Chipmaker

Trump Turns Washington Into America’s Biggest Activist Investor With Intel Deal

Trump’s 10% Stake in Intel: A “Great Deal” or Political Gamble?

Intel Secures $2 Billion Lifeline From SoftBank, Shares Jump

Markets Slide as Strong Data Lifts Yields, AI Stocks Sink

The post Intel Eyes TSMC, Apple for Lifeline: Reports Say Partnership Talks Underway first appeared on Finblog.

According to Bloomberg, Intel has approached Apple Inc. to secure funding as part of a turnaround strategy led by CEO Lip-Bu Tan. While the discussions remain in early stages and may not result in a deal, any partnership would symbolize a major vote of confidence in Intel’s recovery plan.

A Push for Partnerships

The potential Apple tie-up follows a string of high-profile deals for Intel:

• Nvidia invested $5 billion last week, committing to collaborate with Intel on chips for PCs and data centers.
• SoftBank injected $2 billion earlier this month, signaling further US expansion ambitions.

Intel has also been reaching out to other companies for possible partnerships, underlining the urgency of its push to regain competitiveness.

Why Apple Matters

Apple, once one of Intel’s biggest customers, shifted away in recent years, developing its own Apple Silicon chips with Taiwan Semiconductor Manufacturing Co. as its main production partner. While it’s unlikely Apple would return to Intel chips for its devices, an investment would reflect both strategic and political considerations:

• Apple is under pressure to expand US-based production and supply chains.
• At a White House event in August, CEO Tim Cook announced a $600 billion commitment to US initiatives, up from a previous $500 billion pledge.

Intel’s Government Backing

In August, the Trump administration brokered an unconventional deal giving the US government a 10% stake in Intel, elevating the company as a linchpin in America’s drive for domestic semiconductor production. Despite the infusion, Intel continues to face daunting challenges:

• Technological edge lost to rivals like AMD and Nvidia.
• Weak AI positioning, as Nvidia dominates the booming market for generative AI chips.
• Delays and cost pressures, including postponed factory expansions and layoffs.

Market Impact

Despite its troubles, Intel stock has rallied more than 50% since early August, buoyed by government support and optimism around new partnerships. Shares closed at $30.81, up nearly 5% on Wednesday.

Apple, meanwhile, continues to leverage its scale to influence US production and investment trends. In an interview with CNBC’s Jim Cramer, Apple CEO Tim Cook said the investments would encourage other companies to add US production, creating a “domino effect.”

The Bottom Line

Intel is betting big on alliances to stage its comeback — and an Apple deal would be its boldest move yet. For Apple, the talks align with political and strategic goals to deepen US production, though its reliance on TSMC for core chip design remains unchanged.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Nvidia Stakes $5 Billion in Intel: A Strategic Revival for the Chipmaker

Trump Turns Washington Into America’s Biggest Activist Investor With Intel Deal

Trump’s 10% Stake in Intel: A “Great Deal” or Political Gamble?

Intel Secures $2 Billion Lifeline From SoftBank, Shares Jump

Intel’s Best Week in 25 Years: Trump’s Lifeline or Just Burning Billions?

The post Intel Is Seeking an Investment From Apple as Part of Its Comeback Bid first appeared on Finblog.

US stocks pulled back after last week’s surge, with the S&P 500 slipping 0.1% and the Dow Jones Industrial Average down 242 points (-0.5%). The Nasdaq Composite bucked the trend, reversing early losses to gain 0.3%, lifted by strength in semiconductor names.

Tech in focus

Nvidia (NVDA) rose about 2% ahead of Wednesday’s earnings, bolstered by fresh analyst upgrades. With expectations set at $45.9B in revenue and EPS up 48% YoY, the AI leader faces a high bar — options pricing implies a 6% swing in either direction post-results.

Intel (INTC) climbed 1%+ and 22% this month.⁠, extending its rally after the Trump administration confirmed a 10% government stake in the chipmaker. NEC Director Kevin Hassett hinted Monday that this could mark the start of a broader sovereign wealth-style strategy. Trump doubled down, saying he would make such deals “all day long.”

Speaking on CNBC, Hassett also said, “The president has made it clear all the way back to the campaign, he thinks that in the end, it would be great if the U.S. could start to build up a sovereign wealth fund. So I’m sure that at some point there’ll be more transactions, if not in this industry then other industries.”⁠
⁠
Intel, on the other hand, warned of “adverse reactions, immediately or over time,” from investors and employees over the deal in an SEC filing.⁠
⁠

The macro backdrop

Friday’s rally came after Fed Chair Powell signaled rate cuts could begin in September, sending odds of a 25bps move up to 86%. But markets cooled as traders questioned whether tariff-driven inflation could complicate the Fed’s path. US Treasuries eased, with the 10-year yield back at ~4.28%, while the dollar stabilized after Friday’s drop.

Europe and Asia

European equities slipped, with the Stoxx 600 down 0.2%, pressured by sharp losses in renewable stocks after the US blocked an Ørsted wind project. In Asia, China blue chips hit their highest since 2022, and Japan’s Nikkei added 0.4%, supported by Powell’s dovish tone and continued liquidity inflows.

Other moves

• Gold steadied near $3,368/oz as the dollar regained ground.
• Brent crude edged up to $68.16/barrel, supported by the ongoing Russia–Ukraine stalemate and sanctions.
• Furniture retailers including Wayfair (W), RH, and Williams-Sonoma (WSM) slumped after Trump launched a tariff investigation into imports, while US manufacturers like La-Z-Boy (LZB) gained.

Corporate drama

Adding to the day’s headlines, Elon Musk’s xAI and X filed suit against Apple and OpenAI, alleging an “anticompetitive scheme” to dominate generative AI and suppress rival apps. The legal fight could intensify scrutiny on Apple’s App Store practices just as regulators globally ramp up oversight of big tech.

Markets are entering the week with more restraint after Powell’s Jackson Hole lift, keeping one eye on Nvidia’s results and another on the Fed’s September meeting. For now, optimism is tempered by tariffs, inflation risks, and Washington’s growing hand in corporate boardrooms.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Federal Reserve Explained: How It Shapes Stock Market and Economy

Jerome Powell signals Fed may cut rates soon even as inflation risks remain

EU Speeds Up Digital Euro Plans After US Stablecoin Law, Considers Ethereum and Solana

The post Markets Ease as Powell Rally Fades, Nasdaq Finds Support in Nvidia and Intel first appeared on Finblog.

A Government Hedge Fund in the Making

The $11.1 billion equity stake, funded through CHIPS Act subsidies and Secure Enclave grants, gives the U.S. government ownership of 433 million non-voting Intel shares at a 17% discount to market prices. Trump hailed the deal on Truth Social as a “Great Deal for America and for Intel.”

But critics argue the president is turning Washington into a de facto government hedge fund, using subsidies, tariff approvals, and national security clearances to extract equity stakes and revenue streams from private firms. As Yahoo Finance’s Rick Newman put it, “Trump is on an investment spree comparable to a hedge fund founder… except Trump’s capital is the power and credit of the U.S. government.”

Intel’s Lifeline, But Problems Remain

Intel’s market value has shrunk to about $108 billion — a fraction of Nvidia’s $4.3 trillion — after years of losing its manufacturing edge. The company has suffered six straight quarters of losses, faces yield problems with its advanced 14A/18A processes, and risks falling further behind TSMC.

Analysts caution that government money cannot solve technical and demand-side problems. As Reuters bluntly concluded: “Did Trump save Intel? Not really.” The foundry arm still needs external customers to be viable, and without Apple- or Microsoft-scale clients, Intel risks spinning its wheels.

Beyond Intel: A Pattern of Corporate Intervention

The Intel deal is not isolated. Over recent months, Trump has:

• Forced Nvidia ($NVDA) and AMD ($AMD) to hand over 15% of China export revenues in exchange for licenses.
• Approved U.S. Steel’s sale to Nippon Steel only after securing a presidential “golden share” with veto rights over strategic decisions.
• Floated tariffs targeting Apple ($AAPL), later backing off when the company pledged $100 billion in new U.S. investments.
• Ordered Coca-Cola ($KO) to reformulate sodas with cane sugar, reportedly to benefit political allies in the sugar industry.

The New York Times described Trump as “Corporate America’s newest activist investor”, operating not for shareholder return but for political leverage.

Supporters vs. Skeptics

Supporters argue the Intel deal strengthens U.S. tech sovereignty in the face of Chinese state-backed competitors. “Intel is more than just a company, it’s a strategic asset,” said Sujai Shivakumar of CSIS.

Skeptics warn of creeping “banana-republic vibes.” The Washington Post editorial board called the Intel stake “a mistake,” noting that mimicking China’s industrial policy risks undermining U.S. innovation. Critics also see potential cronyism, with Trump free to favor companies aligned with his political goals.

The Bigger Question

Trump’s growing entanglement with corporate America raises profound questions about governance, free markets, and shareholder protections. “Once the government gets involved in strategic decision making, those choices are no longer driven by markets,” warned Sarah Bauerle Danzman of Indiana .

The U.S. is now Intel’s largest shareholder. For Trump, it’s a triumph of deal-making and industrial strategy. For Intel, it’s a lifeline. But for markets, it may mark a turning point — away from free-market capitalism and toward a form of state-managed corporate power unseen in modern U.S. history.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Trump’s 10% Stake in Intel: A “Great Deal” or Political Gamble?

Fed Reserve Explained: How It Shapes Stock Market and Economy

Jerome Powell signals Fed may cut rates soon even as inflation risks remain

EU Speeds Up Digital Euro Plans After US Stablecoin Law, Considers Ethereum and Solana

China’s Gen Z Stocks Surge as Earnings Spark New Wave of Investor Optimism

The post Trump Turns Washington Into America’s Biggest Activist Investor With Intel Deal first appeared on Finblog.

A “Great Deal” or Political Gamble?

President Trump hailed the transaction on Truth Social, calling it a “Great Deal for America and a Great Deal for Intel.” Intel CEO Lip-Bu Tan, once urged by Trump to resign over alleged China ties, has since been rebranded by the White House as a “highly respected” partner.

The government’s stake was struck at $20.47 per share, a 17% discount to Friday’s closing price, giving the Treasury an immediate paper gain of nearly $2 billion. The deal also includes a five-year warrant to purchase another 5% of Intel if its foundry ownership dips below 51%.

Unlike the 2008 bailouts, the government won’t take board seats, but it will hold significant influence as Intel’s largest shareholder.

Why Intel?

Intel has lost ground to rivals Nvidia and TSMC, struggling with yield problems in its 18A process and delays in its new Arizona fabs. Its stock has plunged more than 60% from pandemic highs, and it has reported six straight quarters of losses.

By taking a stake, Washington signals that Intel is “too big to fail.” Analysts see it as a clear attempt to secure domestic semiconductor production amid a broader technology rivalry with China. SoftBank’s recent $2 billion investment in Intel adds a further vote of confidence.

The Catch: Customers, Not Capital

But critics argue the deal does little to fix Intel’s core problems. As Reuters put it in its analysis “Did Trump save Intel? Not really”, the company desperately needs external customers for its 14A and 18A nodes to make its foundry arm viable. Without reliable demand, fresh funding will only prolong the struggle.

“Intel must secure enough customers’ volume to go to production… government money alone won’t change that,” said Kinngai Chan of Summit Insights.

Yields remain a key challenge: unlike TSMC, which absorbs early inefficiencies when working with partners like Apple, Intel’s financial losses make it harder to weather missteps.

The Washington Post calls the deal “a mistake,” arguing that mimicking China’s industrial strategy risks political interference, market distortion, and may fail to address Intel’s core inefficiencies.

The editorial also suggests alternatives like “friend-shoring” supply chains and infrastructure improvements rather than direct equity stakes.

Key Facts at a Glance

Trump’s equity grab does more than inject capital—it reshapes the U.S. approach to strategic industries. But Intel’s revival will require more than funding; it needs customers, technological competitiveness, and internal discipline. As critics caution, this move risks precedent for politicized corporate policy.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Federal Reserve Explained: How It Shapes Stock Market and Economy

Jerome Powell signals Fed may cut rates soon even as inflation risks remain

EU Speeds Up Digital Euro Plans After US Stablecoin Law, Considers Ethereum and Solana

China’s Gen Z Stocks Surge as Earnings Spark New Wave of Investor Optimism

The post Trump’s 10% Stake in Intel: A “Great Deal” or Political Gamble? first appeared on Finblog.

SoftBank Steps In

The deal makes SoftBank Intel’s sixth-largest shareholder, with a stake of just under 2% at $23 per share. Despite becoming a top-10 investor, SoftBank will not seek a board seat or commit to buying Intel’s chips. Shares of Intel spiked more than 7% intraday, while SoftBank shares slipped 4% in Tokyo trading.

Masayoshi Son, SoftBank’s CEO, framed the investment as a bet on U.S. semiconductor strength:

“This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

Why It Matters

Intel has been in turmoil after years of missteps left it trailing rivals Nvidia (NVDA) and AMD (AMD) in high-performance and AI chip markets. It posted an $18.8 billion annual loss in 2024 — its first since 1986 — while its ambitious contract chipmaking unit has struggled to attract customers away from TSMC.

The investment comes amid geopolitical stakes, too. The Trump administration has been weighing whether the U.S. government itself should take up to a 10% stake in Intel as part of CHIPS Act funding, a sign of Washington’s concern about securing domestic semiconductor production.

Market Reaction

• Intel (INTC): +7–10% on the news, up 18% YTD.
• SoftBank (9984.T): –4% in Tokyo.
• AMD (AMD): slid ~4%, with investors speculating about Intel’s attempt to stabilize.
• Nvidia (NVDA): also down ~2.5% as AI chip competition intensifies.

Bigger Picture

SoftBank has been on an investment spree in 2025 — committing $30 billion to OpenAI and leading funding for the $500 billion Stargate datacenter project. Backing Intel strengthens its semiconductor portfolio while keeping close ties with Washington, even as Intel CEO Lip-Bu Tan reshapes strategy under pressure from both investors and the U.S. government.

Still, analysts caution the deal alone won’t fix Intel’s fundamental problems. Amir Anvarzadeh of Asymmetric Advisors summed it up:

“SoftBank’s investment helps, but it is not what is going to move the dial for Intel.”

SoftBank’s cash gives Intel breathing room and political backing — but turning that into real competitive momentum against AMD and Nvidia will be the real test.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Related: Intel’s Best Week in 25 Years: Trump’s Lifeline or Just Burning Billions?

The post Intel Secures $2 Billion Lifeline From SoftBank, Shares Jump first appeared on Finblog.