Intel posts strongest revenue growth in 15 years, shares jump

Intel announced its strongest revenue growth in approximately 15 years, with second-quarter revenue jumping 25% year-over-year to $16.13 billion. This figure significantly surpassed market expectations and marked the highest quarterly growth rate since the third quarter of 2011.

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The second quarter results recorded the strongest revenue growth in the past 15 years.

The company also provided an optimistic third-quarter revenue forecast, projecting between $15.8 billion and $16.8 billion, which is considerably higher than Wall Street's estimates. Adjusted earnings per share for the second quarter doubled expectations, coming in at 42 cents against a forecast of 21 cents.

CEO Pat Gelsinger highlighted the unprecedented demand driven by artificial intelligence, stating, "AI is creating unprecedented computing demand, and Intel will continue to strive for sustained growth across its CPU product lines." The company's foundry segment saw a 31% increase in revenue, reaching $5.8 billion, while data center and AI revenue grew by 59% to approximately $6.3 billion.

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AI is creating unprecedented computing demand, and Intel will continue to strive for sustained growth across its CPU product lines.

Intel revised its planned capital expenditures for the year upward, from $18 billion to $20 billion, indicating a commitment to expanding its manufacturing capabilities and investing in future technologies. This increased spending, coupled with strong sales and improved gross profit margins of 42%, contributed to a significant recovery from the previous year.

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The situation was better than expected in terms of price.