Intel Forecasts Up to $16.8 Billion Q3 Revenue as AI Data Center Demand Lifts Turnaround
Updated
Updated · The Mercury News · Jul 24
Intel Forecasts Up to $16.8 Billion Q3 Revenue as AI Data Center Demand Lifts Turnaround
3 articles · Updated · The Mercury News · Jul 24
Summary
$15.8 billion to $16.8 billion — Intel’s third-quarter sales outlook topped the $15.1 billion analyst average even at the low end, sending shares up 5.4% in premarket trading.
59% growth in data center revenue drove the beat, with CEO Lip-Bu Tan saying CPU demand for AI workloads is outpacing supply as companies shift spending toward running models rather than just training them.
16.1 billion in second-quarter revenue, up 25%, and adjusted profit of 42 cents a share both beat expectations; gross margin widened to 40.4%, though it remains far below Intel’s historical 60%-plus levels.
$20 billion in capital spending this year now looks set to rise further as Intel adds equipment for its own chips and foundry business, where sales climbed 31% to $5.8 billion.
The results strengthen Tan’s comeback effort at a company backed by the US government and other investors, though Intel still must prove it can turn AI momentum into sustained manufacturing and profit gains.