Lip-Bu Tan reports that Intel achieved its fastest revenue growth since 2011 following a strong second-quarter performance.
Lip-Bu Tan reported that Intel achieved its fastest revenue growth since 2011, with the chipmaker posting better-than-expected second-quarter results. The company saw a 25% increase in revenue, driven largely by the artificial intelligence infrastructure boom and high demand for server processors. Intel's data center business saw revenue rise 59% to $6.3 billion, while its client computing group grew 13% to $8.9 billion. The company also reported a recovery in gross margin to 42%, up from 2.5% in the previous year. To secure future market share, Intel is establishing long-term agreements with customers to lock in pricing and chip volume. CFO David Zinsner noted that the company is currently supply-constrained as data center customers demand more production than is currently available. While Intel expects flat PC sales in the third quarter due to a memory shortage, the company is increasing capital expenditures to expand its foundry capabilities. The foundry reported $5.8 billion in sales, marking a 31% annual increase.