Intel’s Q2 2026 revenue surged 25.4% YoY to $16.128 billion, outpacing TSMC’s valuation discount despite operational contrasts.
Intel reported $16.128 billion in Q2 2026 revenue, a 25.4% YoY increase, marking its strongest growth in 15 years. Non-GAAP EPS reached $0.42, beating estimates of $0.2175, driven by 59% growth in Data Center and AI, and 31% in Foundry. A $12.53 billion non-cash charge tied to CHIPS Act escrow resulted in a GAAP net loss of $11.033 billion, a one-time accounting item.
TSMC, by contrast, posted $40.20 billion in revenue, up 36.0% YoY, with EPS of $4.31 and a 67.7% gross margin. Advanced nodes (7nm and below) accounted for 77% of wafer revenue, while 2nm debuted commercially at 3%. Despite TSMC’s scale, Intel’s valuation remains at less than a quarter of TSMC’s $2.07 trillion market cap.
Intel’s U.S.-based 18A foundry ramp and government backing provide a sovereign manufacturing edge, positioning it as a potential hedge against geopolitical risks. The company’s stock surged 317% over the past year before a 33% pullback, with external 18A foundry wins seen as a key catalyst.