Intel stock jumps 11% as AI boom drives fastest revenue growth in nearly 15 years
Intel's stock surged 11% in extended trading on Thursday, fueled by demand from the artificial intelligence boom. The chipmaker reported its fastest revenue growth in almost 15 years, exceeding expectations.
Chipmaker Intel reported better-than-expected second-quarter results on Thursday, achieving its fastest revenue growth rate since 2011. The company's stock climbed 11% in after-hours trading following the announcement.
The company posted revenue of $16.1 billion, a 25% increase year-over-year, which marks the most robust growth for any quarter since the third quarter of 2011. This performance significantly outpaced analyst expectations of $14.42 billion. Adjusted earnings per share came in at 42 cents, well above the expected 21 cents.
This surge is largely attributed to the burgeoning demand for AI infrastructure, which is boosting sales of its server processors. "AI is driving unprecedented demand for compute," said CEO Lip-Bu Tan. Intel's data center business saw revenue jump 59% to $6.3 billion, while its client computing group, which makes PC chips, grew 13% to $8.9 billion.
Intel is also investing heavily in expanding its manufacturing capacity and developing new advanced process nodes, signaling its ambition to become a significant foundry provider for other companies. Despite recent volatility, these strong quarterly results indicate a positive turnaround for the semiconductor giant.