Intel Sets 15-Year Revenue Growth Record Amid AI Boom

Intel announced quarterly results that exceeded investor expectations: second-quarter revenue rose 25% to $16.1 billion, setting a 15-year record for growth rate. The main driver was the server segment, whose revenue increased 59% to $6.26 billion. The client division also grew by 12.8% to $8.9 billion, mainly due to a higher average selling price. The contract manufacturing unit Intel Foundry boosted revenue by 30.5% to $5.8 billion, although operating losses amounted to $2.1 billion due to costs for equipping factories. Chief Executive Officer Lip-Bu Tan noted that the profit margin reached 40.4%, almost 13 percentage points higher than last year's figure. For the current quarter, Intel forecasts revenue between $15.8 billion and $16.8 billion, above analysts' expectations of $15.1 billion. The company has signed 10 long-term contracts for the supply of server processors with durations ranging from three to five years. In the client segment, stable revenue is expected, but PC market growth will be hindered by memory shortages. Capital expenditures have been increased from $18 billion to at least $20 billion. Intel has begun pilot production using Intel 18A-P technology, with mass production on Intel 14A planned for 2028. Despite revenue growth, the company ended the second quarter with a loss of $11 billion due to the consequences of a deal with the US government.