Intel increases Q3 sales prediction, boosts 2026 spending on factories to $20 billion from $18 billion due to AI demand.
BY Mahnoor | 25-07-2026
Intel’s stock price went up 6% before the market opened on Friday. This happened after the chip company gave a better-than-expected sales prediction, showing that the artificial intelligence boom is speeding up its long-expected recovery.
The company said it expects third-quarter sales to be higher than what Wall Street had predicted. It also raised its spending plans for 2026 from $18 billion to $20 billion.
Intel said more customers building AI systems are using its data center CPUs, which is making its future look better. CEO Lip-Bu Tan wants to show Intel can benefit widely despite Nvidia leading in AI chips.
Analysts at Melius Research said the spending increase shows confidence in cash flow and demand from long-term product deals, and also that foundry customers will come for packaging and 14A wafers.
Even though a recent drop in global chip stocks has brought Intel down from its highest prices, its shares have more than doubled this year because people are hopeful about the company’s recovery plan.
The earnings report made at least six financial firms increase their target prices. On average, analysts now expect the stock to be about 8.8% higher than Intel’s last closing price, says LSEG data.
Over the past year, Tan worked to make Intel’s money situation stronger and get help from the US government and big investors, because the company wants to be a key player in making more computer chips in the United States.
Analysts at D A Davidson said, ‘The big increase in spending shows Intel is likely to keep getting new customers as the US wants more chip-making at home.’
Demand for computer brains used in data centers has jumped as AI tools become popular fast. Intel bosses have said before that customer orders are more than what the company can make.
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