Microsoft’s AI revenue growth outpaces chip sector volatility, hitting a $37 billion annual run rate amid Intel’s $3.73 billion Q1 loss.
Microsoft’s AI revenue reached a $37 billion annual run rate, up 123% year-over-year, as chip stocks face June volatility. Analysts had targeted $561 per share before a recent pullback.
Intel, despite a 426.95% one-year rally, reported a $3.73 billion GAAP net loss in Q1 FY2026. The loss stemmed from a $4.07 billion restructuring charge tied to a Mobileye goodwill impairment. Free cash flow remains negative, and forward P/E stands at 123x.
Reddit sentiment for Intel collapsed in June, with scores dropping from 55-78 in mid-May to 12-39 by early June. Posts on r/wallstreetbets signaled capitulation, marking a potential unwinding of the hype cycle.