AI Foundry Betting Faces Surge in Restructuring Costs.. Semiconductor Giant Reports Q1 Loss

Intel Corporation (INTC) reported first-quarter 2026 revenue of $13.6 billion, a 7 percent increase year-over-year. However, one-time charges totaling $4.1 billion—primarily for restructuring and Mobileye impairments—resulted in a net loss of $3.7 billion.

On a non-GAAP basis, the company posted net income of $1.5 billion, or $0.29 per share, and guided second-quarter revenue to a range of $13.8 billion to $14.8 billion, driven by growth in its Data Center & AI and Foundry businesses.

The RSU conversions and share sales for tax‐withholding purposes by Executive Vice President and Foundry General Manager Chandrasekaran Nagasubramaniyan and Director James J. Goetz were disclosed as routine, compensation-related equity transactions.

Recently, Intel signed a multi-year collaboration with Google Cloud to jointly build next-generation AI and cloud infrastructure based on Xeon 6 CPUs and dedicated IPUs. It is also co-developing a Xeon 6-based adaptable AI platform with startup SambaNova.

To strengthen its foundry capabilities, Intel will supply its next-generation 14A process to Tesla’s Terafab project and has agreed to repurchase a 49 percent stake in its Irish Fab 34 for approximately $14.2 billion.

Headquartered in California, Intel began as a PC and server CPU maker and has since expanded into foundry services, AI accelerators and advanced packaging. Backed by U.S. and European semiconductor support policies, Intel is competing with TSMC and Samsung to secure leading-edge process and foundry customers, with large-scale investments and surging AI chip demand shaping the industry’s agenda.