Intel Posts Best Revenue Growth Since 2011 Amid AI Infrastructure Boom

Intel reported its fastest revenue growth in nearly 15 years on Thursday, signaling a potential turning point for the iconic American chipmaker as it attempts to reclaim leadership in the AI era. Second-quarter revenue reached $16.1 billion, comfortably beating analyst estimates of $14.42 billion. The 25% year-over-year growth was driven primarily by strong demand for server processors and a recovery in the PC market. Crucially, Intel's gross margin recovered to 42%, up from a dismal 2.5% in the prior year, as the company benefited from increased scale and higher pricing.

The results come as Intel aggressively expands its foundry business, which reported $5.8 billion in sales, a 31% increase. Earlier this week, the foundry division landed Fortinet as its first named customer for security chips. Despite the revenue beat, Intel's stock remains sensitive to the broader tech selloff, even as shares have climbed over 170% since early 2026. The U.S. government maintains a 10% stake in the company, part of a strategic effort to revitalize domestic semiconductor manufacturing.

However, the road ahead remains competitive. While Intel is showing signs of a turnaround, it continues to face pressure from dominant rivals and high capital costs associated with building new fabrication plants. CEO Pat Gelsinger's strategy relies heavily on the 'Intel 18A' manufacturing process, which the company hopes will eventually allow it to compete for high-end AI chip contracts against industry leaders like TSMC.