Intel Earnings Test AI-Fueled Rally

Intel (INTC, Financials), the U.S. chipmaker and contract manufacturer, will report second-quarter results Thursday with investors looking for proof that its turnaround is gaining traction.

The stock remains up 185% this year despite falling more than 25% from its June 22 record close.

Wall Street expects revenue of $14.42 billion, up 12.1% from a year earlier, according to LSEG data. That would mark Intel's fastest quarterly growth in about six years. Adjusted earnings are forecast at 21 cents per share.

Demand for central processors has improved as companies use more CPUs alongside graphics chips to support AI agents and data center workloads. Intel's data center and AI revenue is expected to rise 36.4% to $5.37 billion.

Investors also want updates on the foundry business. Recent customer wins have improved sentiment, while a possible manufacturing agreement with Apple would add credibility if confirmed.

Still, Intel faces weaker PC demand and heavy spending on new production technology. Adjusted gross margin is expected at 38.8%, well below historical levels.

The report will need to show that stronger AI demand and foundry momentum can translate into better profits, not just faster sales growth.