Intel Reports Strong Earnings Amid Booming AI Demand
Intel reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong demand for its artificial intelligence (AI) hardware. The chipmaker's revenue rose to $16.1 billion, a 15% increase year-over-year and well above the projected $14.43 billion. Adjusted EPS came in at 42 cents per share versus an expected 22 cents. The company also raised its capital expenditures forecast for the year from $18 billion to over $20 billion, reflecting increased investment needed to meet surging demand. CFO David Zinsner highlighted that Intel's AI-driven business grew more than 70% and accounted for about 70% of total revenue. Intel shares rose nearly 4% in premarket trading following the results, which marked its strongest annual revenue growth in over a decade under CEO Lip-Bu Tan. The stock has gained around 170% so far this year.
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