Reversal Erases $90B as Leveraged INTC ETFs Plunge

TLDR

• Intel stock erased nearly $90 billion in market value after reversing its post-earnings rally.
• INTC rose as much as 15% after earnings before falling 4% during regular trading.
• Leveraged Intel ETFs, including LINT and INTW, dropped more than 20%.
• Intel reported $16.1 billion in Q2 revenue, up 25% year over year.
• Intel committed to 14A risk production in 2027 and high-volume ramp in 2028.

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Intel’s sharp post-earnings reversal erased nearly $90 billion in market value and renewed focus on the risks of leveraged single-stock ETFs.

Intel Stock Gives Back Post-Earnings Rally

Intel Corp. shares reversed sharply after initially rising as much as 15% following its second-quarter earnings report. The stock later fell 4% on the day, wiping out the entire post-earnings gain and extending pressure across chip-related trades.

The reversal came during a volatile week for semiconductor stocks, as investors reassessed AI-linked valuations and earnings expectations. Intel’s move followed a broader pattern of sharp single-stock swings across major technology names.

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

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

Intel also guided third-quarter revenue between $15.8 billion and $16.8 billion, above the $15.2 billion estimate. Non-GAAP earnings guidance came in at $0.38 per share, also above expectations.

Leveraged INTC ETFs Drop More Than 20%

The reversal hit leveraged single-stock ETFs tied to Intel. Direxion Daily INTC Bull 2X ETF and GraniteShares 2x Long INTC Daily ETF both dropped more than 20% after Intel’s post-earnings rally faded.

These products seek amplified daily exposure to Intel shares. That structure can increase gains during a rally, but losses can deepen quickly when the underlying stock reverses.

The move reminded investors that leveraged single-stock ETFs carry higher risk than diversified semiconductor funds. A sharp one-day reversal can erase recent gains and create wider losses for traders using amplified exposure.

Intel’s market value drop also showed how quickly sentiment can shift after earnings. Strong headline results did not prevent selling once investors focused on losses, capital spending, and execution risk.

Revenue Growth Meets 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 came mainly from 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 linked to cost inflation.

Data Center and AI revenue climbed 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 $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

Intel Foundry revenue rose 31% to $5.8 billion as Intel 18A production ramped. However, the foundry unit still posted an operating loss of $2.1 billion, though losses narrowed from prior periods.

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

Intel Commits to 14A Production in 2028

Intel said it remains on track for 14A risk production for internal products in the second half of 2027. The company also committed to high-volume ramp in 2028, in line with its advanced manufacturing roadmap.

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.