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Intel shares jump premarket on upbeat Q3 outlook and higher capex
Intel forecast third-quarter revenue above Wall Street expectations and lifted full-year capital spending to $20.0 billion from $18.0 billion, citing stronger data center CPU adoption tied to AI infrastructure builds.
Intel shares rose about 6% in premarket trading after the company delivered bullish forecasts that investors saw as evidence the AI-driven semiconductor boom is helping its turnaround, according to Reuters. The update followed a selloff in global chip stocks that pushed Intel off record highs, but the stock has more than doubled year to date on turnaround optimism. Intel guided for third-quarter revenue above Wall Street expectations and raised its full-year capital expenditure estimate to $20 billion from $18 billion, signaling increased spending confidence tied to demand visibility. Reuters also reported that the company is seeing growing adoption of its data center central processing units by customers building artificial intelligence infrastructure. The company’s outlook is playing out as CEO Lip-Bu Tan positions Intel to benefit more broadly from AI semiconductor demand, even as Nvidia remains a lead supplier of accelerator chips. Intel has also highlighted earlier comments that orders for data center CPUs were running ahead of its production capacity.
Source: Yahoo Finance