Not too long ago, Inter looked like a fallen giant. The company is now recording its “strongest revenue growth in over 15 years,” CEO Lip Vu Tan said on Thursday.
The company’s stock price rose more than 11% in after-hours trading following the company’s second-quarter results.
The company reported sales of $16.1 billion, an increase of 25% year over year. The company also reported adjusted earnings per share of $0.42, nearly double Wall Street expectations.
The company’s data center and AI (DCAI) business, an area that has struggled to keep pace with category leader Nvidia, grew 59% year over year to $6.3 billion.
The results come days after Intel announced it plans to cut jobs in its data center group as part of an efficiency drive.
The results suggest that Intel, which missed out on much of the early AI boom, is gaining momentum. In recent years, the company has suffered from manufacturing delays and has lost its place in the Dow Jones Industrial Average. In 2025, the US government acquired a 9.9% stake in the semiconductor company.
The company is now betting big on its foundry business, which makes chips for third-party customers. This strategy will help Intel diversify beyond its own chip designs and bring it closer to competing with manufacturing industry leader TSMC.
Still, Jacob Bourne, a senior analyst at eMarketer, called the foundry business a “work in progress” that “lost $2.1 billion and has yet to win the key customers on which Intel’s strategy depends.”
Mr Tan attributed the company’s improved performance to improved execution capabilities – “increased speed, accountability and customer focus”.