New Delhi–Intel reported better-than-expected second-quarter results as strong demand for artificial intelligence computing, data center processors and foundry services helped drive a 25% increase in revenue.
The chipmaker generated revenue of $16.1 billion for the quarter ended in June, up from $12.9 billion a year earlier, according to an analysis by the Vietnam Times.
The result exceeded Intel’s guidance and analysts’ expectations of about $15.1 billion.
On a non-GAAP basis, Intel reported net income of $2.2 billion, or 42 cents per share, compared with a loss of $400 million in the same period last year.
However, the company recorded a GAAP net loss of $11 billion, widening from a loss of $2.9 billion a year earlier.
Intel said its server business achieved its strongest year-over-year growth on record. Its Xeon 6 processor was among the fastest-ramping products in the company’s history as enterprise demand for AI workloads increased.
“AI is driving unprecedented demand for compute, and as we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise, ASICs, advanced packaging and wafer foundry network,” Intel CEO Lip-Bu Tan said.
Intel Foundry also made progress during the quarter, with the company’s Intel 18A-P manufacturing process entering risk production. The development is expected to strengthen Intel’s efforts to attract outside chipmaking customers.
The company said it is increasing investments in manufacturing equipment, clean-room capacity and semiconductor substrates to prepare for future AI-related demand.
Intel also announced a 5 billion euro investment to expand production capacity for Xeon processors and next-generation chips.
The company ended the quarter with nearly $30 billion in cash and total liquidity of about $40 billion. (Source: IANS)
