Intel (INTC.US) delivers a stellar earnings report, exceeding expectations, but Wall Street remains concerned about foundry losses and potential "AI valuation squeeze."

智通财经APP has learned that as global demand for semiconductors and computing power continues to evolve, chip giant Intel (INTC.US) has delivered a second-quarter financial report that far exceeded the market's low expectations. Benefiting from the strongest year-on-year growth in almost 15 years for its Data Center and AI business (DCAI) as well as third-quarter guidance that surpassed expectations, Intel’s pre-market share price rose by about 3% on Friday. However, behind this seemingly “great success” in performance, analysts from Seeking Alpha and several Wall Street investment banks have noted that the main driver of the positive share price reaction was the previously lowered market expectations. Intel’s core foundry business (IFS) still faces huge losses, and along with mark-to-market (MTM) accounting adjustments of several billion dollars stemming from the CHIPS Act, Intel’s transformation journey remains fraught with valuation controversies and structural pains.