Chipmaker Intel exceeded expectations in the second quarter, experiencing a 25% increase in revenue compared to the previous year. The growth was primarily fueled by high demand for AI-powered computing, data center processors, and foundry services. The company’s revenue for the quarter ending in June reached $16.1 billion, surpassing both its own projections and analysts’ estimates of around $15.1 billion.
Intel reported a net income of $2.2 billion or 42 cents per share on a non-GAAP basis, a significant improvement from the $400 million loss in the same period last year. However, on a GAAP basis, the company recorded a net loss of $11 billion, wider than the $2.9 billion loss reported in the previous year.
The company highlighted that its server business achieved its strongest year-on-year growth ever, with the Xeon 6 processor becoming one of its fastest-growing products. This growth was attributed to the increasing demand for AI workloads in the enterprise sector. Intel’s CEO, Lip-Bu Tan, emphasized that the surge in AI-related computing needs positions Intel well for sustained growth across various product lines.
Intel also made notable progress in its Intel Foundry business during the quarter, with the Intel 18A-P process entering risk production. This advancement enhances the company’s ability to attract external chip customers. To meet the rising demand for AI-driven technologies, Intel announced plans to boost investments in manufacturing equipment, clean-room capacity, and semiconductor substrates.
The company disclosed a 5 billion euro investment aimed at expanding production capacity for its Xeon processors and next-generation chips. Additionally, Intel concluded the quarter with nearly $30 billion in cash and total liquidity of about $40 billion.
