Intel Posts Fastest Revenue Growth in Nearly 15 Years on AI Boom. But The Stock Still Fell

Intel reported its strongest quarterly revenue growth in nearly 15 years amid an AI infrastructure spending boom, but the stock fell after the earnings release. Adjusted earnings were 42 cents per share, nearly doubling the consensus estimate of 21 cents. Revenue rose to $16.1 billion in the second quarter, versus Wall Street expectations of $14.42 billion. Management also forecast adjusted earnings of 38 cents per share on revenue between $15.8 billion and $16.8 billion, above analyst expectations of 27 cents and $15.1 billion. Shares dropped more than 6% on Friday at 3:01 p.m. ET as investors weighed the results. Data Center and AI Group revenue surged 59% year over year to $6.3 billion, while Client Computing Group rose 13% to $8.9 billion. Intel said PC demand is likely flat due to industry memory shortages, and CFO David Zinsner said the company is supply constrained because data-center demand exceeds production.