Intel posts fastest revenue growth in 15 years
Chip giant regains momentum with AI push and data center growth
1The chip giant's comeback
Intel recorded its strongest revenue growth in over 15 years, with Q2 revenue jumping 25% to $16.1 billion. Shares surged more than 11% in after-hours trading following the news. CEO Lip-Bu Tan credited the performance to 'better execution,' emphasizing improved speed and customer focus.
2AI acceleration
The Data Center and AI (DCAI) business grew 59% to $6.3 billion, signaling Intel's gaining traction in the AI race where it previously lagged behind Nvidia. These results came days after reports of planned layoffs in Intel's data center group as part of efficiency measures.
3Challenging past
Intel struggled in recent years with manufacturing delays and missed the early AI boom, even losing its spot in the Dow Jones index. After receiving a 9.9% investment from the US government in 2025, the company is now betting big on its third-party chip manufacturing foundry business.
4Foundry strategy
Intel's foundry model, which puts it in direct competition with TSMC, aims to diversify beyond chip design. However, the unit lost $2.1 billion last quarter and hasn't yet secured strategic customers. Analyst Jacob Bourne calls it 'a work in progress.'
5Operational overhaul
CEO Tan attributes the improved performance to operational reforms including 'greater speed, accountability, and customer focus.' While streamlining its data center operations, Intel's AI investments are beginning to pay off, marking a potential turning point.
6Industry implications
Intel's transformation could reshape semiconductor industry dynamics. Challenging Nvidia in AI chips and TSMC in manufacturing aligns with US goals for chip self-sufficiency. The company's resurgence may redefine competitive landscapes in both design and fabrication sectors.
Original article: Business Insider — Intel 15 yılın en hızlı büyümesini kaydetti