Intel Q3 Forecast Tops Estimates as AI Inference Fuels CPU Demand

Artificial intelligence spending is broadening from model training to inference and agentic AI, increasing the need for conventional CPUs alongside accelerators in data centers. That shift has revived demand for Intel's Xeon server processors and strained available capacity. The upswing matters because investors are treating the Data Center and AI unit, together with Intel Foundry, as key tests of Chief Executive Lip-Bu Tan's effort to restore technology leadership and reverse years of market-share losses to Nvidia and Advanced Micro Devices.

Intel said on July 23 that revenue for the quarter ended June 27 rose 25.4% to $16.13 billion, while adjusted earnings reached 42 cents a share. Data Center and AI sales climbed 59% to $6.26 billion. The company forecast third-quarter revenue of $15.8 billion to $16.8 billion, above the $15.1 billion LSEG consensus, and adjusted earnings of 38 cents a share versus 27 cents expected. The shares jumped as much as 13% after hours before paring the gain to about 5.2%, as an $11.03 billion GAAP net loss tied largely to a mark-to-market charge on U.S. government escrowed shares tempered enthusiasm.