Intel Jumps 8.6% as Data Center Cuts Sharpen AI Pivot

Intel is seeking a path back into the AI race after NVIDIA established a commanding lead in accelerators used to train large models. Rather than challenge that dominance head-on, Intel is leaning on its Xeon server processors as inference workloads expand across corporate data centers. That shift has made the Data Center and AI business central to Chief Executive Lip-Bu Tan’s effort to cut costs, simplify management and revive growth.

Intel confirmed on July 22, 2026, that it was cutting jobs and reorganizing its data center group, though it did not disclose the number of positions affected. The shares jumped 8.6% to about $105 as investors welcomed the cost action ahead of second-quarter results due July 23. Intel reported $13.6 billion in first-quarter revenue, up 7%, while its data center business grew 22% on stronger AI-related demand.