Intel Reports Strong Q2 Revenue Growth Amid AI Infrastructure Boom
In its second-quarter report, Intel (INTC) revealed a significant surge of nearly 60% in data center and AI segment revenue to $6.3 billion due to strong demand for server CPUs driven by the artificial intelligence infrastructure boom. Total product revenue rose 28%, with client computing group revenue up 13%. The foundry business also saw a 31% increase, though it remains unprofitable. Despite these gains, Intel's stock declined in after-hours trading following management’s announcement of increased capital expenditures for the year. The company reported overall revenue growth of 25%, its fastest pace in nearly 15 years, with adjusted earnings per share turning from a loss to a profit. However, concerns persist about valuations and long-term profitability, particularly as Intel's foundry segment continues to post large operating losses despite growing traction. Looking ahead, management raised capex guidance for both 2026 and 2027 amid ongoing supply constraints.
Tickers: $INTC
Topics: AI infrastructure capital expenditures data center revenue