Intel Q1 Revenue Up 7.2% to $13.6B with Major Amazon Foundry Deal
INTC•Intel posted Q1 2026 revenue of $13.6 billion, up 7.2% year-over-year, with gross margin improvements driven by higher-margin segments and new foundry services deals with Amazon and Google under a $100 billion U.S. chip factory expansion plan. Meanwhile, an analyst firm lowered AMD to Hold, raised its price target to $340, and contrasted limited upside for AMD with Intel’s Q1 beat and guidance raise, underscoring Intel’s competitive lead.
1. Strong Q1 2026 Results
Intel delivered Q1 2026 revenue of $13.6 billion, a 7.2% increase year-over-year, and expanded gross margins through cost optimizations and higher sales in premium segments. The top-end performance and raised guidance reflect accelerating demand for its core microprocessors and data center products.
2. Foundry Services Expansion
The company secured a major manufacturing agreement with Amazon and is in advanced talks with Google to provide semiconductor foundry services. These deals position Intel as a key supplier in the $100 billion U.S. chip factory expansion initiative, with new fabrication capacity coming online.
3. Competitive Edge Highlighted by AMD Downgrade
An analyst firm lowered AMD to Hold and slightly boosted its price target to $340, citing limited upside potential despite strong demand. The note emphasized that Intel’s recent earnings beat and raised guidance further widen the gap as AMD navigates supply constraints into 2027.
