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Intel posts best quarter in 15 years on AI-driven data center demand
Sales rose to $16.1 billion and Intel forecast next-quarter revenue above analysts' expectations, while data center chip sales jumped 59% year over year.
Intel reported its best quarter in nearly 15 years, driven by stronger demand for AI compute. The company said revenue reached $16.1 billion, up 25% from a year earlier, beating analysts' estimate of $14.42 billion.
Adjusted profit came in at 42 cents per share, double the 21 cents Wall Street expected. Intel also forecast revenue between $15.8 billion and $16.8 billion for the next quarter, above the $15.1 billion analysts had projected.
Intel said much of the AI shift is now moving beyond graphics chips to CPU-powered “agentic AI,” which runs tasks like writing code and requires more CPU power. Its data center chip sales jumped 59% in the quarter, and management said it cannot manufacture chips fast enough to meet demand.
In the quarter, Intel reported a profit margin of about 42%, up from 2.5% a year ago, with higher-margin data center sales benefiting the result. Yahoo Finance noted the stock rose roughly 4% to 5% after hours, while the company also signed 10 long-term deals with data center customers.