Intel forecasts upbeat quarterly results after revenue beat on strong AI, data center demand; shares soar

Overview

• U.S. chipmaker's Q2 revenue rose 25% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 was $0.42, up from a loss last year

• Company cites AI-driven demand and improved execution for strong Q2 results

• Shares of Intel rose about 9.2% after the bell

Outlook

• Intel forecasts Q3 2026 revenue of $15.8 bln to $16.8 bln

• Company expects Q3 2026 EPS of $0.31 and non-GAAP EPS of $0.38

• Intel says AI-driven compute demand expected to support growth this year and next

Result Drivers

• AI DEMAND - Co said AI-driven compute demand was a key factor in Q2 revenue growth

• MANUFACTURING EXECUTION - Co cited improved execution, including higher factory yields and better cycle times, as contributing to results

• DATA CENTER AND FOUNDRY GROWTH - Revenue from Data Center and AI and Foundry segments rose sharply yr/yr

Company press release: ID:nBw7TN508a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 13 "strong buy" or "buy", 32 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy."

• Wall Street's median 12-month price target for Intel Corp is $100.00, about 2.6% below its July 22 closing price of $102.62

• The stock recently traded at 75 times the next 12-month earnings vs. a P/E of 72 three months ago

Reuters Recommended Reads

• July 23 - Intel forecasts upbeat quarterly revenue, profit on strong AI-driven server chip demand

• July 22 - IBM cuts annual revenue growth forecast as customers prioritize AI infrastructure spending

• July 23 - AMD says its newest AI server is in full production, will ship in months

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)