Intel Reports Fastest Revenue Growth in Over 15 Years but Stock Falls
Intel (NASDAQ: INTC) reported its strongest quarterly revenue growth in more than 15 years, with second-quarter sales rising 25% year over year to $16.1 billion — well above management's forecast of up to $14.8 billion. The company attributed the surge primarily to strong demand for AI-related server processors and broad-based gains across its data center, client computing, and foundry segments. Despite these positive results, Intel’s stock initially rose 12% in after-hours trading but then fell below Thursday's closing price by Friday morning. Investors may be skeptical due to the company's history of underperformance or concerns about future profitability amid increased capital spending for expansion. The report also included a significant non-cash accounting charge related to its CHIPS Act agreement with the U.S. government, which contributed to an $11 billion net loss on paper but did not affect cash flow. Looking ahead, Intel expects continued growth in 2026 and has raised investments in manufacturing capacity to meet rising demand.
Topics: AI demand data center growth Intel stock performance