Intel shares jumped more than 10% in extended trading on Thursday after the chipmaker delivered stronger-than-expected second-quarter results.
The company reported its fastest quarterly revenue growth in more than 15 years. It also issued an upbeat sales forecast as rising demand for artificial intelligence infrastructure supported its turnaround.
Intel Earnings Beat Wall Street Estimates
Intel reported adjusted earnings of $0.42 per share for the second quarter. Analysts had expected adjusted earnings of only $0.21 per share.
Revenue increased 25% year over year to $16.13 billion. That result comfortably exceeded Wall Street’s consensus forecast of $14.33 billion.
However, Intel recorded a GAAP loss of $2.16 per share. The company attributed much of that loss to non-operating charges.
AI Demand Accelerates Intel’s Turnaround
The latest results suggest Intel’s recovery under CEO Lip-Bu Tan is gaining momentum.
Growing demand for AI computing is supporting both the company’s processor business and its foundry operations. Intel is also benefiting from stronger data-center sales, better manufacturing yields and increased production investment.
These developments could help the company regain competitiveness after losing ground to several major semiconductor rivals.
Intel Sees Unprecedented Demand for Computing
Tan said artificial intelligence is creating unprecedented demand for computing power.
That demand extends across Intel’s central processing units, custom ASIC chips, advanced packaging technologies and semiconductor foundry services.
Chief Financial Officer Dave Zinsner said stronger demand and improved execution helped Intel exceed its previous financial guidance.
He also said the company plans to increase investment in production equipment, clean-room capacity and semiconductor substrates to support future growth.
AI Infrastructure Boom Supports Intel CPUs
Deepwater Management managing partner Gene Munster said Intel’s results reflect a much broader trend across the technology industry.
In his view, the AI investment cycle may still be at an early stage.
Munster described Intel’s processors as important supporting components of the AI infrastructure build-out. He also argued that demand generated by Nvidia’s expansion is helping pull Intel’s business forward.
Intel Expands Its AI Product Portfolio
During the quarter, Intel introduced several new products and partnerships connected to its AI strategy.
The company launched rack-scale AI systems and released the Xeon 6+ server processor, which uses Intel’s advanced 18A manufacturing process.
Intel also expanded its physical AI software portfolio and announced collaborations with Foxconn, Siemens and Fortinet.
These initiatives are designed to strengthen the company’s position across data centers, industrial technology and enterprise computing.
Intel Foundry Begins High-Volume Production
Intel Foundry entered high-volume manufacturing for selected Panther Lake processors during the quarter.
The chips are being produced with ASML’s High-NA extreme ultraviolet lithography technology.
Intel also unveiled plans to invest €5 billion in additional Xeon manufacturing capacity.
The expansion could help the company address rising demand and improve supply availability for server processors.
Data Center Revenue Jumps 59%
Intel’s Data Center and AI division led the company’s growth during the second quarter.
Revenue from the segment surged 59% year over year to $6.3 billion.
Meanwhile, revenue from the Client Computing and Physical AI Group rose 13% to $8.9 billion.
Intel Foundry revenue also increased sharply, climbing 31% to $5.8 billion.
The results indicate that growth is spreading across several parts of Intel’s business rather than depending on a single product category.
Intel Issues Strong Third-Quarter Guidance
Intel expects third-quarter revenue to range between $15.8 billion and $16.8 billion.
The forecast came in above Wall Street’s consensus estimate of $15.1 billion.
The company also expects GAAP earnings of $0.31 per share and adjusted earnings of $0.38 per share.
The stronger outlook suggests Intel expects AI-related demand and improving operational performance to continue supporting growth.
Intel’s AI Recovery Gains Momentum
Intel’s earnings beat, stronger revenue growth and upbeat forecast provided fresh evidence that its turnaround strategy is delivering results.
Demand for server processors, advanced packaging and foundry services remains strong as technology companies continue investing heavily in AI infrastructure.
However, investors will continue monitoring whether Intel can maintain its growth, improve profitability and successfully expand manufacturing capacity.
