Intel's Earnings Breakout: Can AI Power a Lasting Revival?

Intel delivered a much stronger-than-expected second quarter, reporting revenue of $16.13 billion and adjusted earnings of 42 cents per share, comfortably topping Wall Street forecasts. The performance marked the chipmaker's fastest revenue growth in over 15 years, driven by surging demand for AI-related computing. (Sources: CNBC, Bloomberg, Reuters)

The biggest driver of Intel's turnaround was its Data Center and AI segment, where revenue jumped 59% year-on-year to $6.3 billion. Growing demand for AI infrastructure and enterprise server processors helped the company regain momentum as businesses ramped up investments in artificial intelligence.

Intel also issued an upbeat outlook for the third quarter, forecasting revenue of $15.8-$16.8 billion and adjusted earnings of 38 cents per share, well above analyst expectations. The company said AI-driven demand for CPUs and enterprise computing continues to strengthen, supporting its optimistic guidance.

Intel's foundry division continued to improve, generating $5.77 billion in quarterly revenue. The company highlighted progress in securing customers for its advanced manufacturing technologies, including work on its next-generation 14A process, while increasing its 2026 capital expenditure plans to support future growth.

The better-than-expected earnings and strong outlook sent Intel shares sharply higher in after-hours trading. Investors welcomed signs that the company's AI strategy, expanding data center business and manufacturing roadmap are helping revive growth after years of intense competition in the semiconductor industry.