Intel Records 15-Year-High Sales Growth as AI Agent Expansion Drives CPU Demand Surge

Intel reported a 25.4% year-over-year increase in second-quarter revenue to $161.3 billion (approximately 23.6 trillion won), marking its highest quarterly sales growth in 15 years. Adjusted EPS of $0.42 far exceeded market expectations of $0.21, while revenue surpassed forecasts of $144.2 billion (approximately 21 trillion won). The company projected third-quarter revenue between $158 billion and $168 billion (approximately 23 trillion to 24.6 trillion won) and adjusted EPS of $0.38, both significantly above market estimates of $151 billion revenue and $0.27 EPS. Shares surged in after-hours trading following the results, with intraday gains exceeding double digits. CEO David Zyss highlighted AI's role in creating unprecedented computing demand, positioning Intel for sustainable growth through its CPU business. Analysts attribute the performance improvement to shifting AI industry focus toward AI agents and inference-driven applications, boosting data center CPU demand. The data center and AI segment saw a 59% year-over-year revenue increase to $62.6 billion (approximately 9 trillion won), while client computing grew 13% to $88.8 billion (approximately 13 trillion won). However, Intel forecasts slower PC market growth in Q3 due to memory semiconductor shortages. CFO David Zinsner noted current CPU production capacity is nearly fully booked, citing stronger-than-expected AI infrastructure investments. Intel plans to raise its 2023 CapEx budget from $18 billion to $20 billion (approximately 29 trillion won) to meet demand.