Intel beats Q2 estimates as AI demand drives 25 pc revenue growth
Chipmaker Intel reported stronger-than-expected second-quarter results, with revenue rising 25 per cent year-on-year, driven by robust demand for artificial intelligence (AI)-powered computing, data centre processors and foundry services, a report has said.
As per analysis of the Vietnam Times, the company posted revenue of $16.1 billion for the quarter ended June, up from $12.9 billion a year earlier and ahead of its own guidance as well as analysts' expectations of around $15.1 billion.
On a non-GAAP basis, Intel reported net income of $2.2 billion or 42 cents per share, compared with a loss of $400 million in the year-ago period, it added.
However, on a GAAP basis, the company posted a net loss of $11 billion, wider than the $2.9 billion loss reported a year earlier.
According to Intel, its server business recorded its strongest year-on-year growth on record, with the Xeon 6 processor emerging as one of the fastest-ramping products in the company's history amid rising enterprise demand for AI workloads.
"AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and wafer foundry network," Intel CEO Lip-Bu Tan said.
The company said its Intel Foundry business also made significant progress during the quarter, with its Intel 18A-P process entering risk production, strengthening its position to attract external chip customers.
To support future AI-driven demand, Intel said it is increasing investments in manufacturing equipment, clean-room capacity and semiconductor substrates.
The company also announced a 5 billion euro investment to expand production capacity for its Xeon processors and next-generation chips.
In addition, Intel ended the quarter with nearly $30 billion in cash and total liquidity of about $40 billion.
