Intel has reported a first-quarter revenue of $13.6 billion, marking a 7 percent increase year-over-year, as the semiconductor industry evolves to meet the needs of artificial intelligence (AI) infrastructure. The company anticipates revenues between $13.8 billion and $14.8 billion for the second quarter of 2026, with expected non-GAAP earnings per share of $0.20, surpassing analyst expectations.
Despite this revenue growth, Intel experienced a GAAP loss per share of $0.73 in the first quarter. The adjusted non-GAAP earnings per share stood at $0.29, indicating ongoing financial challenges alongside signs of operational recovery. The company forecasts a GAAP gross margin of 37.5 percent and a non-GAAP gross margin of 39.0 percent for the upcoming quarter.
As AI systems increasingly depend on host CPUs for essential operations, Intel's Xeon processors maintain a critical role in server configurations. While Intel re-establishes its presence in the AI infrastructure market, it faces stiff competition from AMD and rising Arm-based server CPUs. Additionally, the transition to a foundry model requires significant investment and effective execution to address underlying issues that continue to impact profitability.