Lip-Bu Tan reports that Intel achieved its fastest revenue growth since 2011 following a strong second-quarter performance.
Lip-Bu Tan, CEO of Intel, reported that the chipmaker achieved its fastest revenue growth rate since 2011 during the second quarter. The company saw a 25% increase in revenue, surpassing analyst expectations and causing the stock to jump 11% in extended trading. The growth was primarily driven by the artificial intelligence infrastructure boom, which fueled a 59% revenue increase in the data center business. While the client computing group remains the largest unit, the data center segment is currently providing the most robust growth. Intel also reported a recovery in gross margins to 42%, attributed to better pricing and economies of scale. Looking ahead, the company issued guidance that topped expectations, forecasting adjusted earnings per share of 38 cents on revenue between $15.8 billion and $16.8 billion. Intel is also securing long-term agreements with customers to lock in pricing and volume. To support future growth, the company is increasing capital expenditures to transition into a primary manufacturer of chips for other companies.