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Intel posts strongest quarterly growth in 15 years as AI demand boosts earnings
🇴🇲 Oman /Technology

Intel posts strongest quarterly growth in 15 years as AI demand boosts earnings

From Times of Oman · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Intel reported its strongest quarterly revenue growth in 15 years, with sales driven by high demand for AI infrastructure.
  • The chipmaker's adjusted earnings and revenue significantly surpassed Wall Street expectations, leading to a rise in its stock price.
  • The company anticipates continued strong demand for its server processors and plans to increase capital expenditure to expand manufacturing capacity.

Intel has announced its strongest quarterly revenue growth in 15 years, significantly exceeding Wall Street's expectations and signaling a robust recovery fueled by the artificial intelligence boom. The US chipmaker posted adjusted earnings of 42 cents per share, well above the predicted 21 cents, while quarterly revenue surged 25% year-on-year to $16.1 billion, surpassing the consensus forecast of $14.42 billion.

This impressive performance, coupled with an optimistic outlook for the current quarter, has boosted investor confidence, driving Intel shares up more than 3% in after-hours trading and extending their year-to-date gain to over 170%. Chief Executive Officer Lip-Bu Tan highlighted the unprecedented demand for compute power driven by AI workloads, stating that Intel is "well-positioned to capture sustainable growth across our CPU franchise."

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.

— Lip-Bu TanCEO Lip-Bu Tan on the impact of AI demand on Intel's business.

Intel's Data Center and AI division was the standout performer, with revenue jumping 59% to $6.3 billion, reflecting substantial enterprise investment in AI infrastructure. Businesses are increasingly adopting CPUs alongside graphics processors for AI systems, recognizing the essential role of CPUs in managing AI agents and complex computing tasks. The company's Client Computing Group, responsible for PC processors, also saw growth, with revenue up 13% to $8.9 billion.

Despite global memory shortages potentially impacting PC shipments, Intel's Chief Financial Officer David Zinsner indicated that demand for server processors continues to outpace manufacturing capacity. The company plans significant capital expenditure increases to expand production facilities for both its own chips and for contract manufacturing customers. Intel's foundry business also experienced strong growth, with revenue up 31% to $5.8 billion, as the company advances its next-generation chip manufacturing processes.

Customers continue to signal a strong and sustainable spending environment.

— David ZinsnerCFO David Zinsner on the sustained demand for Intel's server processors.
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Originally published by Times of Oman. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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