Intel Foundry Posts $2.4 Billion Q1 Loss as Stock Surrenders Over One-Third From Peak
Updated
Updated · Trefis · Jul 27
Intel Foundry Posts $2.4 Billion Q1 Loss as Stock Surrenders Over One-Third From Peak
3 articles · Updated · Trefis · Jul 27
Summary
$2.4 billion in Q1 2026 foundry losses sharpened investor focus on Intel’s missing profits, helping drive the stock more than one-third below its 52-week high after a yearlong surge.
41% gross margin in Q1, with guidance down to 39% for Q2, underscored the cost of ramping Intel’s 18A manufacturing node and higher memory and input expenses.
$57 billion in trailing-12-month revenue still grew 7.5%, while AI-linked businesses reached about 60% of sales and expanded 40% year over year, showing demand remains strong.
308% stock gains over the past year had been fueled by improving factory execution, multiyear customer deals and Intel’s push to reclaim CPU share in AI systems, but investors are now waiting for margins to recover.