U.S. chipmaker Intel (INTC) has reported strong second-quarter financial results, including its biggest revenue growth in 15 years.
Intel announced earnings per share (EPS) of $0.42 U.S., which was double the $0.21 U.S. forecast on Wall Street.
Revenue for the April through June quarter totaled $16.1 billion U.S., which was well ahead of the $14.42 billion U.S. consensus expectation of analysts.
Sales were up 25% year-over-year, the fastest rate of growth since 2011.
Intel’s gross margin came in at 42%, up from 2.5% a year ago, which the company attributed to the benefits of scale with more revenue, as well as selling microchips with higher pricing.
Management also issued guidance that topped Wall Street forecasts.
For the current third quarter, Intel said it expects earnings per share of $0.38 U.S. on revenue of $15.8 billion U.S. to $16.8 billion U.S.
Analysts had revenue of $15.1 billion U.S. and earnings of $0.27 U.S. penciled in for the company.
Intel executives also said the company is starting to craft long-term agreements with customers for its server microchips, some with pricing locked in and others focused on chip volume.
“AI is driving unprecedented demand for compute,” said Intel CEO Lip-Bu Tan in the company’s earnings statement.
Intel shares are up over 170% so far this year. The stock has soared after the U.S. government took a 10% stake in the company as part of its effort to support U.S. microchip manufacturing.
However, prior to today (July 24), INTC stock had fallen 28% in July to trade at $100.23 U.S. per share
Despite the stock’s recent slump, Intel said that it is getting a boost from the artificial intelligence (A.I.) infrastructure boom, which is helping sales of its server processors.
Tech Insider
