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Lip-Bu Tan reports strongest revenue growth in 15 years for Intel as AI demand drives CPU workloads

Intel CEO Lip-Bu Tan reported the company's strongest revenue growth in more than 15 years, driven by unprecedented demand for compute power in artificial intelligence. Data center revenue climbed 59% year over year in the second quarter, while the company's 18A yields are trending ahead of targets.

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Analysts are highlighting a shift in AI tasks toward CPU-powered workloads as compute needs transition from GPU-based model training to agentic AI workloads. This trend is supported by Dell's recent earnings, where the traditional server segment revenue soared 122% to $10.5 billion in the second quarter. While the stock currently trades near $91.45, some analysts project significant growth. Trip Chowdhry believes Intel's annual earnings per share could grow more than tenfold to $20 by 2031, potentially doubling the stock price to $200. Other estimates call for 2027 earnings per share to reach $2.04. Despite these projections, Intel Foundry still posted an operating loss of $2.1 billion in Q2, and PC consumption is expected to be down low double digits percent for all of 2026.

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