Intel Forecast Tops Estimates as AI Chip Demand Surges
Intel is seeking to regain ground lost to Nvidia and Advanced Micro Devices after missing the first wave of the artificial-intelligence boom. Chief Executive Lip-Bu Tan is betting on data-center CPUs, custom chips, advanced packaging and foundry services, while the rise of agentic AI is reviving demand for Xeon processors that handle the general-purpose computing needed alongside accelerators. Intel’s planned 14A process is central to its bid to restore manufacturing leadership and attract outside customers.
Intel on July 23 forecast third-quarter revenue of $15.8 billion to $16.8 billion, topping the $15.1 billion average estimate compiled by LSEG. Adjusted earnings are expected to reach 38 cents a share, versus analysts’ projection of 27 cents. Revenue for the second quarter ended June 27 rose 25.4% to $16.13 billion, while adjusted profit of 42 cents a share doubled expectations. Tan said Intel was fully committed to high-volume production using its 14A technology in 2028.
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The history behind this eventIntel Admits It Rushed 18A, Says Next-Generation 14A Is Ahead as AI Inference Demand Grows
Intel is seeking to revive its foundry competitiveness with the Intel 18A process, but Chief Financial Officer David Zinsner acknowledged that its research and development team had previously moved too quickly, at one point exceeding the company’s ability to execute. Stable mass production of 18A will be critical to Intel’s efforts to catch up with TSMC, lower manufacturing costs and win external customers.
Intel has recently adjusted its Intel 18A strategy, prioritizing process stability and performance rather than continuing to pursue an overly aggressive timetable. The company said its next-generation Intel 14A process has benefited from the technology and experience gained during the 18A rollout and is currently ahead in development. Intel also expects rising demand for AI inference computing to drive revenue growth in its data center business.
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