Intel’s stock surged over 7% in after-hours trading on Thursday after reporting second-quarter earnings that outpaced Wall Street forecasts.
The chipmaker posted adjusted earnings per share (EPS) of $0.38 on revenue of $16.1 billion, surpassing analyst estimates of $0.21 EPS and $14.43 billion in revenue.
Compared to a year ago, when Intel reported a loss of $0.10 per share on $12.9 billion revenue, this marks a substantial turnaround.
Revenue grew 25% year over year, with the data center segment leading the way, generating $6.3 billion, well above the $5.54 billion expected.
Client computing revenue also topped projections, reaching $8.9 billion versus the $7.99 billion anticipated.
Intel’s foundry business showed remarkable strength, with revenue climbing 31% year over year to $5.8 billion, beating the $5.6 billion estimate.
Looking ahead, Intel raised its third-quarter revenue guidance to a range of $15.8 billion to $16.8 billion, comfortably higher than the $15.06 billion forecast by analysts. EPS guidance of $0.38 also beat the consensus of $0.27.
CEO Lip-Bu Tan highlighted the surge in AI-driven demand as a key factor, noting that Intel’s diverse portfolio, including CPUs, ASICs, advanced packaging, and wafer foundry services, positions it well for sustained growth.
CFO Dave Zinsner credited improved factory yields and faster production cycles for the earnings beat, with plans to significantly boost investments in equipment and cleanroom capacity.
Intel’s turnaround is notable, with shares up 178% since the start of 2026, though still about 29% below the record closing price set in June.
Meanwhile, the company confirmed layoffs in its Data Center Group as part of a restructuring effort to streamline operations and focus on core competencies.
Intel’s foundry business is attracting major clients. Google recently placed an order for 3 million custom Tensor Processing Units to be manufactured by Intel, reflecting growing trust in its manufacturing capabilities.
This momentum comes amid broader industry shifts, including Nvidia’s ongoing developments in AI chip technology.
