Intel Revenue Accelerates as Data Center Growth Spikes
The semiconductor maker reported second-quarter revenue of $16.1 billion, a 25% increase from a year ago.
Intel (INTC), the semiconductor maker, reported second-quarter revenue that rose 25% year-over-year to $16.1 billion.
The result marked a significant acceleration in growth compared to the 7% year-over-year increase reported in the first quarter. Revenue also grew sequentially from $13.6 billion in the prior quarter.
Profitability metrics improved across the board. GAAP gross margin expanded 12.9 percentage points year-over-year to 40.4%, while non-GAAP gross margin rose to 41.8% from 29.7% in the same period last year. The company's GAAP operating margin improved 35.8 percentage points to 11.1%, reversing a loss of 24.7% in the second quarter of 2024.
Growth was driven by a sharp spike in the Data Center and AI segment, where revenue grew 59% year-over-year to $6.3 billion. This represented a steep acceleration from the 22% growth the segment saw in the first quarter.
Other divisions also saw increased momentum. Intel Foundry revenue rose 31% year-over-year to $5.8 billion, up from 16% growth in the prior quarter. The Client Computing and Physical AI Group, which the company renamed this quarter, saw revenue grow 13% year-over-year to $8.9 billion, compared to 1% growth in the first quarter.
Intel forecasts third-quarter revenue between $15.8 billion and $16.8 billion. The company provided non-GAAP earnings per share guidance of $0.38 for the third quarter, an increase over the $0.29 a share reported in the first quarter.
Cash from operations rose to $7.0 billion in the second quarter, up from $1.1 billion in the first quarter.