Intel Corp (NASDAQ:INTC, XETRA:INL) shares jumped nearly 11% in after-hours trading after the chipmaker reported second quarter results that exceeded Wall Street expectations, driven by stronger demand across its data center and client computing businesses and a better-than-expected outlook for the third quarter.
The company reported second quarter revenue of $16.1 billion, up 25% from a year earlier and above analyst expectations of $14.43 billion.
Adjusted earnings per share came in at $0.42, compared with consensus estimates of $0.21 per share.
Intel’s Data Center and AI segment generated $6.3 billion in revenue during the quarter, topping analyst expectations of $5.54 billion and rising 59% year over year. The Client Computing and Physical AI Group reported revenue of $8.9 billion, up 13% year over year and ahead of estimates of $7.99 billion.
Intel forecast third quarter revenue of $15.8 billion to $16.8 billion, above Wall Street expectations of $15.1 billion.
The company expects adjusted earnings per share of $0.38, compared with analyst estimates of $0.27.
“AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and vast wafer foundry network,” Intel CEO Lip-Bu Tan said in a statement.
“Our Q2 results represent our strongest revenue growth in more than fifteen years, enabled by greater speed, accountability, and customer focus.”
Intel CFO Dave Zinsner wrote that the company delivered a strong quarter “on robust demand and improved execution,” including higher factory yields and improved cycle times.
He added that AI-driven compute demand continues to strengthen and that Intel is increasing investments in equipment, clean room space and substrates to support expected growth.