Intel Shares Rise on Strong AI-Driven Forecasts
Intel's shares rose nearly 6% in premarket trading as the chipmaker reported stronger-than-expected revenue forecasts for Q3 and raised its capital expenditure estimate to $20 billion. The improved outlook is attributed to increased demand for Intel’s data center CPUs, driven by infrastructure investments for artificial intelligence (AI). CEO Lip-Bu Tan has been positioning Intel to benefit from AI-driven semiconductor growth despite Nvidia's dominance in accelerator chips. Analysts noted that the capital expenditure increase reflects confidence in long-term agreements and growing interest from foundry customers. Despite a recent selloff, Intel’s stock is up more than 20% this year due to optimism around its turnaround strategy. Six analysts have raised their price targets for Intel following these results. The company has also secured financial backing from the U.S. government and major investors as it aligns with Washington's efforts to revive domestic semiconductor manufacturing.
Topics: AI capital expenditure semiconductors stock performance