Intel Q2 revenue beats expectations, strong Q3 guidance, shares jump 13% after the close driven by data center AI demand

Deep Tide TechFlow news: On July 24, Intel (INTC.O) issued an unexpectedly strong revenue outlook, indicating that a surge in data center spending is helping the chipmaker achieve the long-awaited recovery it has been targeting. The company said it expects third-quarter sales to reach between $15.8 billion and $16.8 billion. Even at the low end of that range, it comfortably exceeds analysts’ average expectation of $15.1 billion.

This outlook highlights Intel’s growing momentum among data center customers, who urgently need chips to meet the demands of AI computing. In the last quarter, sales in this segment jumped 59%, more than double Intel’s overall revenue growth rate. After the earnings release, Intel’s stock rose 13% in late trading. In addition, Intel’s second-quarter revenue came in at $16.13 billion, also beating market expectations of $14.43 billion.