Key facts
- Intel's second-quarter revenue rose 25% year-over-year to $16.1 billion.
- The data center and AI (DCAI) business grew 59% to $6.3 billion.
- Adjusted earnings per share were $0.42, significantly exceeding expectations.
- CEO Lip-Bu Tan cited improved execution as the driver of the company's performance.
Intel has reported its strongest revenue growth in over fifteen years, with second-quarter results showing a 25% year-over-year increase to $16.1 billion. The company's data center and AI (DCAI) division, a key area of focus, saw a significant 59% surge in revenue, reaching $6.3 billion. This performance marks a notable turnaround for the chipmaker, which had previously been perceived as a struggling giant, facing manufacturing delays and competition in the AI sector.
CEO Lip-Bu Tan attributed the improved financial results to better execution, emphasizing increased speed, accountability, and customer focus. The company's strategy includes a significant bet on its foundry business, manufacturing chips for third-party customers to diversify its revenue streams and compete more directly with leaders like TSMC. However, analysts like Jacob Bourne from Emarketer note that the foundry business is still developing and has yet to secure major clients, having incurred a $2.1 billion loss.
These positive results come shortly after Intel announced plans for layoffs within its data center group as part of an efficiency drive. The company's recent performance suggests it is gaining momentum after missing early opportunities in the AI boom and after losing its position in the Dow Jones Industrial Average. The U.S. government also took a 9.9% stake in the company in 2025.