Intel reported its fastest revenue growth since 2011 and issued higher-than-expected guidance for the current quarter.
Intel reported a 25% year-over-year revenue growth for the second quarter, marking the company's fastest pace since 2011. The chipmaker exceeded analyst expectations by reporting adjusted earnings per share of 38 cents on revenue between $15.8 billion and $16.8 billion. This growth was primarily driven by a 59% surge in the data center business, fueled by the artificial intelligence infrastructure boom. CEO Lip-Bu Tan noted that AI is creating unprecedented demand for compute power, positioning the company to capture sustainable growth across its CPU franchise. To secure market power, Intel is establishing long-term agreements with customers to lock in pricing and chip volume. While the client computing group remains the largest unit with 13% growth, the company expects flat PC sales in the third quarter due to a memory shortage. Additionally, the foundry reported $5.8 billion in sales, a 31% annual increase. Despite a recent 28% stock slump in July, the company's gross margin recovered to 42% due to better pricing and economies of scale.