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Intel’s AI Business Surges 80% — Can Its $1.9 Billion Foundry Loss Shrink?

Intel Corporation reported third-quarter 2026 results characterized by strong growth in its Data-Centric and Artificial Intelligence (DCAI) segment, offset by weakness in the Client Computing Products Group (CCPG) amid industry-wide memory shortages and constrained IT budgets. The company achieved $16.5 billion in revenue, driven primarily by record year-over-year growth in DCAI, where revenue reached $7.3 billion—a 17% sequential and nearly 80% annual increase—surpassing expectations due to improved factory output and supplier partnerships. Operating profit in DCAI totaled $3 billion, or 42% of segment revenue, supported by robust demand across hyperscale, enterprise, and neo-cloud customers. The purpose-built silicon portfolio within DCAI demonstrated strong momentum, more than doubling revenue year-over-year. Conversely, CCPG revenue declined 9% sequentially to $8.1 billion, reflecting the intensified memory market challenges that pressured PC demand and inventory adjustments by OEM partners.