#IntelQ2RevenueSurges25%

Intel posts strongest growth in 15 years driven by AI demand

Intel surprises market with stronger than expected quarterly results, biggest of the last decade. Q2 Revenue $16.13B (25% YoY), beats consensus of $14.43B. Adjusted EPS $0.42 vs consensus of $0.21.

Biggest driver for revenue increase was Data Center & AI, up 59% from a year ago at $6.26B.

Intel Foundry business also growing rapidly at 31% YoY, generating $5.8B revenue, indicating that its manufacturing ramp is on the path to recovery.

"AI is driving unremcedented demand for advanced computing,” said Intel CEO Lip-Bu Tan in the earnings report, adding that supply issues “likely will remain going forward”. “We’re seeing increased demand across the industry due to AI,” Tan noted, although, as usual, did not elaborate on future sales outlook regarding artificial intelligence chips.

Intel projected third-quarter revenue to be between $15.8 billion and $16.8 billion, the high end of which exceeded the Street’s projection. The results and upbeat forecast drove IntelShares up more than 13% in late trading. As demand for everything AI continues to take off, Intel seems to be right in the mix for what could be one of technology’s hottest cycles in recent years.

Will Intel regain competitive edge on AI or will it be continuously run over by its competitors such as Nvidia and AMD?

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