Intel reported a significant increase in server CPU sales, driven by growing demand from artificial intelligence applications. The company's latest earnings report showed strong performance in its data center segment, with revenue from server processors rising sharply as cloud providers and enterprises invest in AI infrastructure.
Intel's CEO highlighted that the company's Xeon processors are being deployed in AI workloads, including training and inference, which has accelerated demand. The earnings beat analyst expectations, with revenue for the quarter reaching $14.2 billion, up 8% year-over-year. Data center revenue alone grew 15% to $6.8 billion.
Investors responded positively, sending Intel shares up 5% in after-hours trading. Analysts noted that Intel's turnaround efforts, including its foundry business and advanced manufacturing nodes, are gaining traction.
The company also provided an optimistic outlook for the next quarter, forecasting revenue of $14.5–$15.5 billion, above consensus estimates. Intel's progress in its 18A process node and new chip designs were cited as key factors in maintaining competitive advantage.
Despite ongoing challenges in the PC market, Intel's server business continues to benefit from the AI boom, positioning the company for sustained growth.