Intel’s Revenue Jumps 25%, Stock Swings: Drivers and Outlook

Intel posted its fastest quarterly revenue growth in over 15 years at 25%, yet the stock charted a volatile path.

Quarter Snapshot

The company posted $16.1 billion in Q2 revenue, a 25% YoY increase, surpassing the upper end of its April outlook of $14.8 billion.

■Revenue: $16.1 bn (+25% YoY)

■Non‑GAAP Gross Margin: 41.8% (+12.1 pts)

■Non‑GAAP Operating Margin: 17.2% (up from –3.9%)

■Operating Cash Flow: $7.0 bn

Growth Engines: AI & Data Centers

AI and data‑center business surged 59%, delivering $6.3 bn in revenue, reflecting the AI‑driven compute demand.

■AI & Data Centers: $6.3 bn (+59%)

■Client Computing & Physical AI: $8.9 bn (+13%)

■Foundry: $5.8 bn (+31%)

Profitability Turnaround

Operating margin flipped to 17.2% from a negative figure a year ago, and adjusted EPS rose to $0.42 from ‑$0.10.

■Adjusted EPS: $0.42

■Adjusted EPS a year ago: ‑$0.10

■Adjusted Net Income: $2.2 bn

■Reported Net Loss: $11.0 bn (non‑cash CHIPS Act charge)

Market Reaction & Valuation Puzzle

Following the earnings release, the share closed at $100.23, down 2.3%, then jumped 12% in after‑hours trading before erasing those gains.

■Closing Price: $100.23

■After‑hours Spike: 12%

■Short‑term Pullback: 2.3% decline and further slide

The results underscore a sustainable AI‑driven growth trajectory, but the stock’s short‑term wobble signals investor caution over the profitability shift and the accounting impact of the CHIPS Act escrow charge. Long‑term investors should monitor the pace of AI and foundry expansion while weighing the balance‑sheet implications.