In 1Q26, Intel's revenue grew by 7.18% due to strength in the company's DCAI and foundry segments; client computing group remains flat, up only 1% y/y. Intel's DCAI segment will remain as the company's main growth engine due to agentic artificial intelligence and higher demand for more inferences, resulting in the need for more CPUs. Although Intel's foundry segment has developed substantially, the segment is still bleeding money and does not contribute meaningfully to the topline; most of the revenue are internal.
Intel: Potential Upside Exists Despite Stretched Valuation Multiples
Source: Seeking Alpha