Old man of tech still got it — Intel posted a double beat thanks to its ability to adapt to the sweeping AI revolution.
🚀 Intel Brings the Heat
- Intel reminded Wall Street it still knows how to surprise.
- The American chipmaker reported adjusted earnings of 42 cents per share on $16.1 billion in revenue, beating expectations of 22 cents and $14.4 billion, sending the stock as much as 12% higher after hours (down to 5% since).
- A year ago, Intel posted a quarterly loss. Fast-forward 12 months and the company is delivering the kind of earnings beat that investors had almost forgotten it was capable of.
- What’s more, revenue climbed 25%, posting its fastest growth since the third quarter of 2011.
🤖 AI Demand Does the Heavy Lifting
- The biggest bright spot came from Intel Foundry, where revenue climbed 31% year over year to $5.8 billion, topping analyst estimates. The foundry business manufactures chips for other companies, making it one of Intel's biggest AI growth bets.
- Management also served up upbeat guidance, forecasting third-quarter earnings of 38 cents per share on $15.8 billion-$16.8 billion in revenue. Wall Street had been looking for just 27 cents and roughly $15.1 billion.
- Guidance often matters more than the quarter itself. Investors buy tomorrow, not yesterday — and Intel gave them plenty to think about.
🏭 Spending for the Next Race
- Intel said it plans to meaningfully increase investment in equipment, clean-room capacity and advanced chip packaging substrates to support demand through this year and next. In other words: the AI buildout isn't slowing down.
- The stock has already rallied about 160% this year, though it still sits roughly 30% below its all-time closing high reached in June. That's a reminder of just how wild the AI trade has become.
- For a company many had written off as yesterday's chip giant, Intel suddenly looks a lot more like a contender than a comeback story. Wall Street's score, apparently, is that the veteran still has plenty of processing power left.