Intel posts strong AI‑driven revenue growth while its foundry unit records large losses

Intel reported second‑quarter revenue of $16.1 billion, a 25 % year‑over‑year increase and the strongest quarterly growth in about 15 years. The surge was driven by its Data Center and AI division, which saw revenue jump 59 % to roughly $6.3 billion, helped by enterprise AI spending and the selection of Intel’s Xeon 6 processors for Nvidia’s latest DGX Rubin AI systems. CEO Lip‑Bu Tan called the quarter an important milestone in the company’s recovery and highlighted continued execution despite ongoing restructuring.

The company forecast third‑quarter revenue between $15.8 billion and $16.8 billion, indicating confidence that AI demand will stay resilient. However, Intel’s Foundry segment, while generating $5.8 billion in revenue (up 31 % YoY), posted an operating loss of about $2.1 billion, reflecting the high costs of competing with TSMC in advanced manufacturing. Intel continues to seek third‑party customers for its 18A process technology to improve the unit’s profitability.