AI Demand Fuels Intel's Fastest Revenue Growth in 15 Years
The figures align with Intel’s goal of reinvention, which included a strategic shift to a systems foundry and a partnership with Nvidia.
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After Alphabet and Tesla, Intel has released its second-quarter results, reporting its fastest growth in 15 years and boosting its capital spending plans by $2 billion.
“AI is driving unprecedented demand for compute,” said Lip-Bu Tan, CEO, in an official statement. “As we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise.”
Clocking a revenue of over $16.1 billion, the hardware giant has raised this year’s capital expenditure estimate from $18 billion to $20 billion.
“AI-driven compute continues to strengthen, and to support expected growth this year and next across products and foundry, we are meaningfully increasing our investments in equipment, clean room space, and substrates,” said Dave Zinsner, CFO, Intel.
Intel’s revenue growth for the quarter was driven by demand and price adjustments for Intel-designed chips. It expects product revenue to grow to over $15 billion, well above the $13.6 billion estimated figure.
The figures posted align with Intel’s goal of reinvention, which included a strategic shift to a systems foundry and a partnership with Nvidia. Notably, its foundry revenue grew to $5.8 billion, beating expectations and up 31% from last year.
Meanwhile, its data center and AI business revenue grew by 59% to touch $6.3 billion.
A few key operations highlights include launching the next-generation data center CPU, Xeon 6+, advancing its agentic AI infrastructure strategy with new rack-scale AI infrastructure, expanding its physical AI and robotics momentum, introducing Intel Arc G-Series processors, and forging strategic collaborations with Foxconn, Siemens, Hitachi, Echo Neurotechnologies, and Greenstone Biosciences.
In April, it came on board Elon Musk’s Terafab AI chip complex project, which aims to develop the former trillionaire’s robotics and data center ambitions.
Intel’s bet on chips and data centers reflects the rising demand for AI computing power as companies rush to adopt and deploy advanced systems.
