Intel blows past estimates, recording fastest sales growth in almost 15 years on ‘unprecedented’ demand
Intel raised its capital spending forecast to $20 billion as AI data-center demand lifted quarterly sales 25.4% and profit topped estimates.
- On Thursday, Intel forecast third-quarter revenue of $15.8 billion to $16.8 billion, exceeding analyst estimates, and raised this year's capital expenditure forecast to $20 billion amid surging AI data-center demand.
- Booming demand for data center CPUs driven by agentic AI recently outstripped Intel's manufacturing capacity, pushing adjusted gross margin to 41.8%, well above the 38.8% analyst estimate.
- Second-Quarter sales reached $16.13 billion, with the foundry business contributing $5.77 billion after securing Tesla as a customer for its next-generation 'Terafab' AI chip project.
- Chief Financial Officer David Zinsner said Intel expects capital expenditures to be "up meaningfully next year" and has secured three- to five-year customer agreements for data center CPUs and specialized XPUs.
- Competition intensifies as Nvidia develops the 'Vera' processor for the CPU market, while Amazon and Alphabet continue building in-house, Arm-based CPUs, pressuring Intel's expansion strategy.
99 Articles
99 Articles
Intel raises spending plans as AI data center demand fuels CPU growth
Intel has increased its spending plans for the next two years as the AI data center boom drives demand for its central processing units (CPUs), according to reports discussing the company’s quarterly forecast. Intel also projected profits above analysts’ estimates on July 23. Intel expects third-quarter revenue of between $15.8 billion and $16.8 billion, compared with analysts’ average estimate of $15.10 billion, according to data compiled by LS…
Intel’s revenue forecast beats estimates
Intel Corp delivered a revenue forecast that shattered Wall Street estimates as booming data center spending fuels a long-awaited turnaround.Sales would be US$15.8 billion to US$16.8 billion in the third quarter, the company said on Thursday.Even the low end of that range would easily clear the US$1
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