Intel: AI Momentum Builds, But Margins Lag
Seeking Alpha
February 13, 2026
AI-Generated Deep Dive Summary
Intel’s latest financial results highlight strong momentum in AI but also reveal lingering profitability challenges. The company generated $8.2 billion in Q4 revenue from its Client Computing Group, which boasts a robust 27% operating margin. However, the ramp-up of its 18A process technology is putting pressure on margins, impacting overall profitability. Meanwhile, Data Center and AI revenue reached $4.7 billion with a 26.4% margin, yet this segment remains constrained by supply chain issues despite strong demand for inference-driven workloads.
The Foundry business, which Intel is increasingly leaning on to diversify its portfolio, delivered roughly $4.5 billion in revenue but posted a significant $2.5 billion operating loss. This reflects the high costs and complexities of ramping up new semiconductor manufacturing processes. The company expects 14A volume by 2028, signaling that this segment is still years away from contributing meaningfully to profits.
Looking ahead, Intel’s Q1 guidance calls for revenue between $11.7–$12.7 billion with a 34.5% gross margin and breakeven EPS. While these numbers suggest growth potential, they also highlight the challenges of navigating a cyclical industry with shifting demand dynamics. Investors will be closely monitoring Intel’s ability to balance its transition to an edge AI platform while managing near-term profitability pressures.
This matters for investors because it underscores Intel’s strategic pivot to capitalize on the growing AI market, even as execution risks persist. The company’s success in scaling its AI and foundry businesses will be critical to determining its long-term growth trajectory and shareholder returns.
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Originally published on Seeking Alpha on 2/13/2026