Intel Exceeds Earnings Estimates Amid AI Demand Surge; Shares Rise
Intel forecast third-quarter revenue above estimates due to strong demand for its CPUs driven by the agentic AI boom, leading to a 5.2% rise in after-hours trading. The company raised capital expenditure plans and is now fully committed to high-volume production of chips using its upcoming 14A manufacturing technology. CEO Lip-Bu Tan emphasized progress on customer engagement with this advanced process node. Intel reported second-quarter sales growth of 25.4%, exceeding expectations, while adjusted gross margin outperformed forecasts at 41.8%. The data center and AI business revenue also surpassed estimates by a significant margin. CFO David Zinsner noted long-term agreements for CPU and XPU chips with customers, signaling sustained demand. The company's stock has faced broader chip sector pressures but remains up over 170% year-to-date. Analysts are watching Intel’s data center growth and foundry business as key indicators of its turnaround success.
Topics: AI Chip Demand Revenue Beat Stock Movement