INTC Stock Rallies 12% After-Hours — Q3 Outlook Soars Past Estimates, Reports Strongest Q2 Revenue Growth In 15 Years

• Intel stock jumped after predicting third-quarter sales of $15.8 billion to $16.8 billion, compared to expectations of $15.16 billion. 
• Second-quarter revenue surged 25% year-over-year to $16.1 billion, powered by a 59% jump in data center chip demand 
• Chief Executive Officer Lip-Bu Tan announced plans to boost capital expenditures to meet surging demand for central processing units used in AI infrastructure. 

Intel Corp. (INTC) share price surged 12% after-hours on Thursday after the chipmaker delivered a stronger-than-anticipated sales forecast for the third quarter, signaling that strong infrastructure spending on artificial intelligence is accelerating the chipmaker's financial recovery.

The Santa Clara, California-based company reported a 25% increase in second-quarter revenue to $16.1 billion. Excluding specific items, earnings came in at 0.42% per share. Wall Street analysts had anticipated $14.5 billion in revenue and an adjusted profit of $0.22 per share, as per Fiscal.ai.

The revenue expansion was largely driven by Intel’s data center operations, where sales soared 59% last quarter to $6.3 billion. As tech companies shift their focus toward executing and running AI applications rather than strictly training models, demand for general-purpose central processing units (CPUs) has experienced a sharp resurgence. 

Furthermore, CEO Lip Bu Tan also hinted at heightened capex spending on equipment, clean room space, and substrates. "In data centers, the CPU is taking off," Tan stated in an interview to Bloomberg. "Demand is outpacing our increasing supply, and so those are good problems to have." 

INTC Stock: Data Center And AI Sees Fastest Growth 

Across Intel's core divisions, the Client Computing Group—which manufactures personal computer processors—generated $8.9 billion in revenue. Meanwhile, Intel Foundry Services recorded $5.8 billion in sales, representing a 31% increase. 

Its Data Center and AI business contributed about $6.3 billion, up 59% over the previous year, and was its fastest-growing revenue segment. 

“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,” Tan said in a press statement. 

INTC Q3 Outlook Exceeds Expectations 

Looking ahead to the third quarter of 2026, Intel projects revenue to land between $15.8 billion and $16.8 billion.

The conservative end of the company's projection easily surpasses the $15.16 billion average consensus estimate compiled by Fiscal.ai. Furthermore, Intel forecasts third-quarter GAAP earnings per share of $0.31 and non-GAAP earnings per share of $0.38, above expectations of $0.28 per share. 

INTC Stock: Retail View 

Retail sentiment on Stocktwits was ‘bullish’ with ‘high’ message volumes. Intel is a part of key tech ETFs like Vanguard Technology ETF (VGT) and Invesco QQQ. 

A user questioned if Intel can maintain the earnings momentum. 

INTC shares have gained more than 178% year-to-date.

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