Intel shares rise after strong quarterly results and AI-driven growth
Intel earnings beat expectations as AI demand drove 25% revenue growth. See how data centers, foundry gains and stronger guidance lifted shares.
Intel reported secondquarter results that beat Wall Street expectations and sent its shares higher in extended trading. The company said revenue rose 25% from a year earlier, its fastest quarterly growth since 2011, as demand tied to artificial intelligence supported sales of server processors.
The chipmaker posted adjusted earnings of 42 cents per share on revenue of $16.1 billion, compared with analyst estimates of 21 cents per share and $14.42 billion in revenue. Intel also gave thirdquarter guidance above forecasts, with management pointing to continued demand in data centers and stronger pricing.
CEO LipBu Tan said AI is driving unusual demand for computing power. Intel also said it has started signing longerterm customer agreements and is expanding investment in manufacturing as it pushes to grow its foundry business. The company said data center revenue climbed 59% and foundry sales rose 31%, while PCrelated revenue increased 13%.