Intel Just Posted Its Fastest Revenue Growth in More Than 15 Years, but the Stock Is Falling. Here's What's Going On.

Intel reported Q2 2026 revenue of $16.1 billion, up 25% year-over-year—the chipmaker's fastest revenue growth in more than 15 years. The company swung to adjusted EPS of $0.42, driven by AI and data center demand. Despite the beat, shares gave back an initial 12% after-hours gain and fell below Thursday's close by Friday's session.

The reversal centers on valuation. Intel now trades at a 60x price-to-earnings multiple, pricing in sustained high growth rates that investors are reassessing in real time. The stock's initial pop reflected relief that the company's turnaround is gaining traction, but the Friday selloff signals skepticism that margins and growth can justify the premium. AI-driven server chip demand lifted results, yet the market is questioning whether Intel can maintain the 25% expansion rate embedded in its current multiple.