Intel Corp.’s shares jumped 1.13 percent to $119.84 on the Nasdaq on May 22, 2026, after the company posted a 7% revenue increase in its first quarter of 2026.
The boost was largely driven by Intel’s growth in AI server demand and progress in its foundry business. The foundry, a factory that produces semiconductors for other companies, has been a key area of focus for Intel as it aims to become a major player in the foundry market.
AI Server Demand Heats Up
Intel’s data center business, which includes AI server sales, saw a significant increase in revenue during the quarter. This growth is likely due to the increasing demand for AI-powered computing infrastructure from cloud providers, data analytics companies, and other organizations.
**AI server sales rose by 12% year-over-year**, with Intel capturing a larger share of the market. This growth is a result of the company’s efforts to improve its AI server offerings, including the release of its new Xeon D-1500 processor, which is optimized for AI workloads.
Foundry Progress
Intel’s foundry business also showed significant progress during the quarter. The company announced that it had reached a major milestone in its **Fab 42** project, a new semiconductor factory that will enable Intel to produce more advanced chips for other companies.
The foundry business has become a strategic priority for Intel, allowing the company to tap into a new revenue stream and gain more control over the semiconductor supply chain. By producing chips for other companies, Intel can generate revenue without having to directly compete with its foundry clients.
What this means
Intel’s growth in AI server demand and foundry progress are positive signs for the company’s long-term prospects. As AI continues to drive growth in the data center market, Intel’s focus on AI server sales and foundry business will likely remain a key driver of its revenue growth in the coming quarters.
This news also has implications for the broader semiconductor industry, as Intel’s progress in foundry business could potentially disrupt the market and create new opportunities for other companies to tap into the growing demand for custom chip design.
