Intel Corp. outlined accelerating progress in its turnaround strategy at the Deutsche Bank 2026 Technology Conference on Wednesday, raising its 2026 capital expenditure target to $20 billion from $18 billion and detailing execution milestones across its semiconductor roadmap.
The Santa Clara-based company reported its stock has gained 259% over the past year, trading at $87.36 with a market capitalization of $459 billion. Revenue growth reached 7.5% over the last twelve months, supported by a $23 billion equity offering completed earlier this year to fund capital investment and supplier commitments. Gross margins came in at the low 40% range in 2024, exceeding prior guidance and moving toward long-term targets of the mid-40s, high 40s and eventually above 50%.
Intel’s foundry business, including ASIC operations, is expected to begin near 40% gross margins, though operating losses remain substantial at approximately $2.5 billion per quarter. Management reiterated a target to reach foundry breakeven by the end of 2027, though this could extend to 2028 depending on customer adoption and scaling pace. Advanced packaging technology, specifically EMIB-T, is projected to deliver 40% gross margins and 30% operating margins, with revenue potential in the multiple billions per customer annually.
Process technology execution is advancing across multiple fabs. Fab 52 in Ireland is running Intel 3 for Granite Rapids, while Fab 52 in Arizona is preparing Intel 18A. Fab 62 in Arizona is nearing readiness, awaiting acceleration, and Oregon serves as the pilot line transitioning toward volume production for Intel 14A. Construction continues on Mod 1 in Ohio, designed to accommodate up to four fabs over time.
The company’s 14A node is tracking ahead of defect density targets, with risk production planned for 2027 and high-volume manufacturing targeted for 2028. Advanced packaging revenue is expected to begin ramping in the second half of 2027, becoming a material contributor by 2028 and reaching full stride in 2029. Server unit growth has remained in double digits through 2024 and 2025, with supply constraints projected to persist through 2028.
Intel’s leadership team has implemented significant organizational changes, reducing management layers from 12 to six and cutting vice president roles from about 450 to 200. The company is not returning to DRAM manufacturing, opting instead to collaborate with major memory players on system-level solutions. Desktop and client rollouts include Nova Lake scheduled for 2025, while memory pricing pressures are expected to ease gradually through 2027.
