United States chipmaker Intel surges on AI-driven rebound | JQJO

United States-based Intel reported a sharp acceleration in growth in its latest quarter, posting second-quarter revenue of $16.13 billion, about 25% higher than a year earlier and well above Wall Street’s $14.3 billion consensus estimate, marking its fastest top-line expansion in more than 15 years. The company said surging demand for artificial intelligence infrastructure, particularly for autonomous “Agentic AI” systems, drove robust orders for high-performance server CPUs and data center chips. That trend fueled a 59% year-over-year sales increase in its Data Center and AI division, underscoring how AI-related workloads are becoming a central driver of Intel’s recovery in core enterprise markets.

United States-based Intel said the stronger results and outlook prompted a sharp reaction in financial markets, with the company’s shares rising more than 10% in trading as investors responded to the acceleration in growth and the renewed strength of its AI strategy. To address what it described as a demand bottleneck and to secure additional capacity for future AI infrastructure needs, Intel announced plans to increase capital expenditures to more than $20 billion. The company intends to use the higher spending to expand chip manufacturing and foundry capacity, reinforcing its role as a key supplier in the global buildout of AI-focused computing infrastructure.