Key facts
- Intel is expected to report its fastest quarterly revenue growth in approximately six years.
- Analysts anticipate Intel's second-quarter revenue to reach $14.42 billion, a 12.1% increase year-over-year.
- The company's data center and AI segment is projected to grow by 36.4% to $5.37 billion.
- Intel's adjusted gross profit margin is expected to be 38.8%.
- Intel's stock has fallen over 25% from its record high in June but is still up 185% for the year.
Intel's upcoming quarterly results are poised to reveal whether the company's significant stock gains this year are supported by its performance, particularly as demand for AI-powered central processors rebounds. Analysts project the company will report its fastest quarterly revenue growth in approximately six years, with its data center and AI segment expected to see a 36.4% increase to $5.37 billion. The company is also seeking new customers for its contract manufacturing business, with a potential deal to manufacture processors for Apple, announced by U.S. President Donald Trump in April, being a key point of interest, though neither company has confirmed it.
Despite the positive outlook for AI-driven demand, Intel faces challenges including weaker demand in the PC market and profit margins that remain below historical levels. Bernstein analysts noted that while the market and narrative are becoming more supportive, fundamentals are still challenging. Last quarter, Intel benefited from tight capacity, allowing it to sell unexpected inventory, including older and lower-specification products.
Analysts expect Intel to report second-quarter revenue of $14.42 billion, a 12.1% increase from the previous year, with adjusted earnings of 21 cents per share. The adjusted gross profit margin is anticipated to be 38.8%, pressured by significant foundry investments and the costs associated with ramping up new manufacturing processes.