Intel Posts Earnings Surprise on AI Boost, With Revenue Growth at 15-Year High

[By Lee Byung-chul, New York correspondent] Intel said it confirmed that it is benefiting from rising investment in artificial intelligence infrastructure after posting second-quarter results that beat market expectations. Strong demand for server semiconductors pushed quarterly revenue growth to its highest level since 2011, and its third-quarter outlook also topped Wall Street forecasts.
On the 23rd local time, Intel reported second-quarter revenue of $16.1 billion and adjusted earnings per share of 42 cents. That was well above market estimates compiled by LSEG, which called for revenue of $14.42 billion and EPS of 21 cents.
Investors reacted immediately after the earnings release. Intel shares jumped more than 11% in after-hours trading. The key driver behind the results was stronger sales of server processors, supported by expanding AI data center investment. Revenue rose 25% from a year earlier, marking the company's fastest quarterly growth since the third quarter of 2011.
Lip-Bu Tan, Intel's Chief Executive Officer (CEO), said, "AI is creating unprecedented demand for computing." He added, "Intel is positioned to drive sustainable growth across its CPU business."
Intel's third-quarter outlook also came in above market expectations. The company projected revenue of $15.8 billion to $16.8 billion and adjusted EPS of 38 cents. Both figures exceeded market forecasts of $15.1 billion in revenue and EPS of 27 cents.
By business segment, the data center unit led growth. Revenue from the data center division jumped 59% from a year earlier to $6.3 billion. The client computing business, which handles PC semiconductors, also posted revenue of $8.9 billion, up 13%.
To respond to expanding AI investment, Intel has also begun aggressively expanding long-term supply contracts for server CPUs. So far, it has signed 10 long-term deals, with some focused on locking in prices in advance and others aimed at securing supply volumes.
David Zinsner, Chief Financial Officer (CFO), said supply remains tight, with demand from data center customers exceeding production capacity.
Intel also plans to accelerate efforts to strengthen its manufacturing competitiveness. The company said it will significantly increase capital spending next year to expand its foundry business, which manufactures chips for other semiconductor companies. It also stressed that its latest process, "14A," is being developed faster than previous generations. Foundry revenue reached $5.8 billion, up 31% from a year earlier.



[email protected] Lee Byung-chul, correspondent Reporter