Intel Corp. shares erased nearly $90 billion in market value after a sharp reversal that followed the company's second-quarter earnings report, drawing renewed attention to volatility in single-stock leveraged ETFs tied to INTC.

Intel Gives Back Post-Earnings Rally

Intel shares initially rose as much as 15% after the company reported second-quarter results, but the move did not hold during regular trading. The stock later fell 4% on the day, erasing the full post-earnings gain and adding pressure to chip-related trades.

The reversal took place during a volatile week for semiconductor stocks, as market participants reassessed AI-linked valuations and earnings expectations. Intel's move also followed a broader pattern of sharp single-stock swings among major technology names, a trend that has become more pronounced as options activity and index-weighted positioning have grown around mega-cap tech.

BREAKING: Intel, $INTC , erases its +15% post-earnings rally and falls -4% on the day.

The stock has now erased -$90 billion in market cap since 4:20 PM ET yesterday. pic.twitter.com/r4BfmVftgU

— The Kobeissi Letter (@KobeissiLetter) July 24, 2026

https://x.com/KobeissiLetter/status/2080668294428688573?ref_src=twsrc%5Etfw

Intel reported second-quarter revenue of $16.1 billion, up 25% from a year earlier and ahead of the $14.5 billion estimate. Adjusted earnings were $0.42 per share, above the $0.22 estimate.

The company also issued third-quarter revenue guidance of $15.8 billion to $16.8 billion, exceeding the $15.2 billion estimate. Non-GAAP earnings guidance was $0.38 per share, also above expectations.

Leveraged INTC ETFs Fall More Than 20%

The reversal weighed heavily on leveraged single-stock ETFs linked to Intel. Direxion Daily INTC Bull 2X ETF (LINT) and GraniteShares 2x Long INTC Daily ETF (INTW) both dropped more than 20% after Intel's post-earnings rally faded.

These products are designed to provide amplified daily exposure to Intel shares. That structure can magnify gains when the underlying stock rises, but it can also deepen losses when the stock reverses. Single-stock leveraged ETFs launched in the U.S. in 2022 and have since expanded to cover a range of individual companies, attracting traders seeking concentrated short-term exposure without using options or margin.

The move highlighted the higher risk profile of leveraged single-stock ETFs compared with diversified semiconductor funds. A sharp one-day reversal can erase recent gains and create larger losses for traders using amplified exposure.

Intel's market value decline also showed how quickly a stock can move after earnings. Strong headline results did not prevent selling as attention shifted to losses, capital spending, and execution risk.

Revenue Growth Accompanies Foundry Losses

Intel's Client Computing and Physical AI Group generated $8.9 billion in revenue, up 13% year over year. The company said the increase was driven mainly by higher average selling prices rather than stronger unit sales.

Chief Financial Officer David Zinsner said, "Client obviously exceeded expectations." He added that part of the increase came from product mix and price changes tied to cost inflation.

Data Center and AI revenue rose 59% year over year to $6.3 billion. Chief Executive Lip-Bu Tan said, "Q2 year-over-year server growth was the strongest on record." Intel competes in this segment against AMD and NVIDIA, both of which have benefited from surging demand for AI accelerators.

INTEL $INTC Q2'26 EARNINGS HIGHLIGHTS

🔹 Revenue: $16.1B (Est. $14.50B) 🟢; +25% YoY 🔹 Adj. EPS: $0.42 (Est. $0.22) 🟢 🔹 Adj Gross Margin: 41.8% (Est. 39%) 🟢; +1,210bps YoY 🔹Raises FY26 Capex $20B (prior $18B)

Q3 Guide: 🔹 Revenue: $15.8B-$16.8B (Est. $15.2B) 🟢 🔹 Non-GAAP… pic.twitter.com/8rGtyx2ojI

— Wall St Engine (@wallstengine) July 23, 2026

https://x.com/wallstengine/status/2080383725431370089?ref_src=twsrc%5Etfw

Intel Foundry revenue increased 31% to $5.8 billion as Intel 18A production ramped. The foundry unit still posted an operating loss of $2.1 billion, though losses narrowed from earlier periods. Intel's foundry business is central to its strategy of manufacturing chips not only for its own products but also for external customers, positioning the company as a potential alternative to TSMC and Samsung in contract chipmaking.

Intel also reported a GAAP loss of $11 billion. The loss was driven by a $13.619 billion mark-to-market charge tied to escrowed shares under its U.S. government agreement. Non-GAAP net income was $2.2 billion, reflecting stronger underlying operations.

Intel Reaffirms 14A Timeline

Intel said it remains on track for 14A risk production for internal products in the second half of 2027. The company also committed to a high-volume ramp in 2028, consistent with its advanced manufacturing roadmap. The 14A node follows Intel 18A and represents the next step in the company's effort to regain process leadership against TSMC's corresponding advanced nodes.

Tan said, "We remain on track for 14A risk production for our internal products in the second half of 2027." He added that Intel made the decision in Q2 to commit fully to a 2028 ramp.

The company raised its capital spending outlook for 2026 to $20 billion, up from $18 billion. Operating cash flow reached $7 billion, above expectations, as AI-related demand continued to exceed available supply.