Key facts
- Intel reported its strongest revenue growth in 15 years, with Q2 revenue up 25% year-over-year to $16.1 billion.
- The data center and AI (DCAI) business revenue grew 59% to $6.3 billion.
- The company forecast third-quarter revenue above Wall Street expectations and raised its capital expenditure estimate to $20 billion.
- Intel's foundry business, which aims to manufacture chips for third-party customers, reported a $2.1 billion loss.
- CEO Lip-Bu Tan highlighted improved execution and customer focus as key drivers of the company's performance.
Intel's shares rose 6% in premarket trading on Friday, fueled by bullish forecasts that signal the AI boom is propelling the chipmaker's long-awaited turnaround. The company reported its strongest revenue growth in 15 years, with second-quarter revenue increasing 25% year-over-year to $16.1 billion. The data center and AI (DCAI) business saw a significant 59% surge in revenue, reaching $6.3 billion, reflecting growing adoption of its central processing units (CPUs) for AI infrastructure.
CEO Lip-Bu Tan attributed the improved financial results to better execution, emphasizing increased speed, accountability, and customer focus. Intel also forecast third-quarter revenue above Wall Street expectations and raised its capital expenditure estimate to $20 billion from $18 billion. Analysts at Melius Research noted that the increased capital expenditure signals confidence in cash flow and demand visibility from long-term agreements.
Despite a recent selloff in global chip stocks, Intel shares have more than doubled this year, driven by optimism around its turnaround efforts. The company is seeking to play a key role in the U.S. push to revive domestic semiconductor manufacturing. However, Intel's foundry business, which aims to manufacture chips for third-party customers, reported a $2.1 billion loss and has yet to secure major clients, making it a work in progress.