Intel's AI-driven data center growth set to power second-quarter earnings

Intel Corp. (NASDAQ: INTC) is scheduled to report second-quarter earnings on July 23, with Visible Alpha consensus pointing to revenue of $14.4 billion, up 12% from a year earlier. The outlook builds on a solid first-quarter performance, with continued momentum in AI-related infrastructure offsetting a more gradual recovery in the PC market.

Growth is expected to be led by Intel's Products business. Revenue from the Data Center and AI segment is forecast to climb 42% year-on-year to $5.6 billion, reflecting continued investment by hyperscale cloud providers and enterprises in AI infrastructure and custom processors. Meanwhile, the Client Computing Group, Intel's largest business, is expected see relatively modest growth, with revenue rising 1.3% to $8 billion as demand in the PC market continues to stabilize. Combined, the two businesses are projected to lift Products revenue 15% to $13.6 billion.

Intel Foundry, the company's contract manufacturing business, is expected to see revenue increase by 25% year-on-year to $5.5 billion, driven by continued progress as the company scales its manufacturing operations.

The earnings report will also be closely watched for updates on Intel's manufacturing expansion plans. The company recently outlined a €5 billion ($5.7 billion) investment to upgrade its Irish manufacturing campus, part of its broader strategy to expand advanced semiconductor production in Europe and capitalize on rising demand for AI and high-performance computing.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.