Intel's Foundry Business Gains Strong Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 10 2026
0mins
Source: NASDAQ.COM
- Surge in Foundry Orders: Google has partnered with Intel to manufacture over three million Tensor Processing Units (TPUs) by 2028, indicating significant market demand for Intel's foundry services, which is expected to further boost the company's revenue growth.
- Significant Revenue Growth: Intel's foundry business generated $5.4 billion in revenue in Q1 2026, marking a 16% year-over-year increase and accounting for 40% of the company's total revenue, showcasing its strong performance in the semiconductor market, outpacing the overall 7% revenue growth.
- Expanding Customer Base: In addition to Google, Intel has secured a foundry order from Tesla and is in talks with Apple, which will provide long-term growth potential for Intel's foundry business and enhance its competitive position in the market.
- Optimistic Market Outlook: Despite Intel's high price-to-earnings ratio of 141, analysts anticipate that its earnings growth will exceed expectations, and with the ongoing development of its foundry business, investors maintain an optimistic view on its future performance, potentially driving the stock price higher.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 121.100
Low
20.00
Averages
39.30
High
52.00
Current: 121.100
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company's segments include Intel Products, Intel Foundry, and All Other. Its Intel Products comprise Client Computing Group (CCG) and Data Center and AI (DCAI). CCG delivers platforms and processors that power PCs and edge devices, enabling enhanced performance, connectivity and user experience for consumer and commercial markets with capabilities that also support retail, industrial robotics and AI ecosystems at the edge. DCAI delivers workload-optimized solutions based upon its x86 architecture for data centers, including CPUs, AI accelerators, NICs, IPUs and custom ASICs, enabling performance and scalability for cloud, enterprise, telecommunication and HPC environments. The Intel Foundry segment comprises technology development, manufacturing and foundry services, developing new semiconductor process technologies and advanced packaging technologies. All Other segments include Mobileye and Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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