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Intel’s Strong Q2 Shows Revenue and Margin Recovery

Datacenter demand outstripping supply could force Intel to scale foundry and data‑center capacity with higher capital spending.

Overview

  • Intel reported Q2 revenue of $16.1 billion and GAAP EPS of $0.42, beating Street estimates and marking 25.2% year‑over‑year growth.
  • The Client business delivered $8.9 billion and Datacenter produced $6.3 billion, with company commentary saying datacenter demand materially outpaced available supply.
  • Gross margin rose to 41.8%, above consensus, and the company guided Q3 EPS to $0.38 while sell‑side full‑year consensus sits near $0.65.
  • Analysts raised price targets after the results, lifting the average target to about $107.67 and prompting renewed investor interest in the stock.
  • Intel plans bigger capex to expand foundry and AI‑focused data‑center capacity, a move that could relieve short‑term supply tightness but raises execution and funding risk for the company and for customers waiting for more chips.