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Join nowand also get a VIP ticket to GamesBeat Next (Nov 2-3, SF).Intel reported it had its strongest revenue growth in more than 15 years in the second quarter ended June 30, driven by accelerating AI demand and disciplined execution, with output exceeding expectations.
Revenue, gross margin, and earnings per share all exceeded Intel’s guidance. Ironically, Intel report the results on a day when AMD announced some of its most competitive products in history in competition with both Intel and Nvidia. Intel’s stock closed down for the day, but it’s up 9% in after-hours trading. Worth noting: Nvidia is worth $5 trillion in the stock market, AMD is worth $880 billion, and Intel is worth $503 billion.
Q2 year over year server growth was the strongest on Intel’s record, Intel said, and Xeon 6 continues to be one of the fastest-ramping products in Intel’s history, reflecting improving execution and strong customer demand.
Intel’s Q2 revenue was $16.1 billion, up 25% from $12.9 billion a year earlier. GAAP net loss was $11 billion, compared with a loss of $2.9 billion a year earlier. But non-GAAP results showed a profit of $2.2 billion (42 cents a share) for Q2, compared to a loss of $400 million a year earlier. Analysts were expecting revenue of $15.1 billion and EPS of 27 cents a share.
Intel Foundry, where Intel builds semiconductor chips for other companies, was a key Q2 highlight, with Intel 18A-P has entered risk production, providing additional performance and power advantages while maintaining IP and design compatibility with Intel 18A. That positions 18A-P as a competitive node for external customers.
Regarding Intel Foundry targets, “I keep raising the bar on internal targets, and the team keeps exceeding them,” said Lip-Bu Tan, CEO of Intel, in an analyst call.
Intel’s 14A process is increasingly competitive as an offering for external chip customers, Tan said.
In short, the opportunities ahead of Intel are substantial, the company’s strategy is delivering early results, and the company is confident that Intel is well positioned to help define the next era of computing.
“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 vast wafer foundry network,” said Tan, in a statement. “Our Q2 results represent our strongest revenue growth in more than fifteen years, enabled by greater speed, accountability, and customer focus.”
“We delivered a strong second quarter, exceeding our financial guidance on robust demand and improved execution, including volume upside driven by higher factory yields and improved cycle times,” said Dave Zinsner, Intel CFO, in a statement. “AI-driven compute continues to strengthen, and to support expected growth this year and next across products and foundry, we are meaningfully increasing our investments in equipment, clean room space, and substrates.”
Tan said in the call that he sees more opportunities for Intel to build more purpose-built computing products for the AI era.
“We are already making great strides in our purpose-built portfolio,” he said, pointing to a deal with Fortinet. “We are operating with greater speed, accountability and customer focus.”
The comparability of the Consolidated Condensed Financial Statements YoY was impacted by the sell off of Altera. Altera, a business offering programmable semiconductors, primarily FPGAs, and related products for a broad range of applications that was previously a wholly owned subsidiary, was deconsolidated from Intel’s Consolidated Condensed Financial Statements effective September 12, 2025, following the closing of the sale of 51% of Altera’s issued and outstanding common stock. Altera’s financial results of operations were included in our Consolidated Condensed Financial Statements through September 11, 2025.
Intel advanced its agentic AI infrastructure strategy with new rack-scale AI infrastructure and disaggregated inference solutions built on Intel Xeon processors. Intel, SambaNova and Foxconn demonstrated production-ready rack-scale infrastructure for inference and agentic workloads, while Vector Core Compute (VC2) unveiled a disaggregated agentic cloud combining Intel Xeon® processors, SambaNova RDUs and NVIDIA Blackwell GPUs.
Intel launched next-generation data center CPU, Xeon 6+, Intel’s first server class product on Intel 18A for sustained performance under real-world power constraints.
Intel expanded its physical AI and robotics momentum, with more than 130 customers adopting or testing Intel Core Ultra Series 3 and Intel Core Series 3 processors for edge AI and robotics applications. Intel also introduced OpenVINO Physical AI, an open-source framework designed to help developers deploy robotics models across vision, language, reasoning and motion-control workloads.
Intel announced strategic collaborations with Foxconn, Siemens, Hitachi, Echo Neurotechnologies and Greenstone Biosciences to co-develop industry-specific AI and compute solutions powered by Intel processors and purpose-built silicon.
Intel announced a €5 billion investment to expand manufacturing capacity and increase production of Intel Xeon® 6 and next-generation Intel Xeon processors built on Intel 3.
Intel expanded Bowers campus capacity, increasing Intel Mask Operations capability to support current and future leading-edge process technology development and manufacturing.