Intel (NASDAQ: INTC) shares jumped 4.5% in premarket trading on Thursday after the company released a third-quarter forecast that surpassed analyst expectations.
Intel predicted that its quarterly profit and revenue would exceed market estimates, driven by robust demand for its server central processing unit (CPU) chips, fueled by the ongoing artificial intelligence boom that is accelerating computing infrastructure expansion. The company forecast third-quarter revenue in the range of $15.8 billion to $16.8 billion, above the average analyst estimate of $15.1 billion. Adjusted earnings per share are projected at $0.38, beating the analyst consensus of $0.27.
Intel is benefiting from the rapid growth of so-called "agent AI," where autonomous agents perform tasks such as computer coding on behalf of human users. Despite being impacted by a broader sell-off in chip stocks, which has pushed its share price down more than 25% from its historical closing high on June 22, the stock remains up over 170% year-to-date.
For the second quarter ended June 27, Intel reported revenue of $16.13 billion, up 25.4% year-over-year, and adjusted earnings per share of $0.42. These results surpassed market expectations of $14.42 billion in revenue and $0.21 in adjusted earnings per share. The adjusted gross margin came in at 41.8%, exceeding the market forecast of 38.8%.
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