Intel Rallies On Q2 Earnings Beat, CEO Says Chipmaker 'Well-Positioned' In AI

Semiconductor company Intel Corp INTC reported second-quarter financial results after the market close Thursday. Here are the key highlights.

What Happened: Intel reported second-quarter revenue of $12.9 billion, which was down 15% year-over-year. The revenue came in ahead of a Street consensus estimate of $10.97 billion, according to data from Benzinga Pro.

Earnings per share of 13 cents beat a Street consensus estimate of a loss of 3 cents per share.

“Our Q2 results exceed the high end of our guidance as we continue to execute on our strategic priorities, including building momentum with our foundry business and delivering on our product and process roadmaps,” Intel CEO Pat Gelsinger said.

Revenue by operating segment and year-over-year performance was:

• Client Computing Group: $6.8 billion, -12%
• Data Center and AI: $4 billion, -15%
• Network and Edge: $1.4 billion, -38%
• Mobileye: $454 million, -1%
• Intel Foundry Services: $232 million, +307%

Related Link: Intel Discloses $32.7B Investment In Germany 

What’s Next: Intel said it continues to execute its strategy and has seen momentum “across process and product technology and foundry.”

Guidance from the company sees third quarter revenue in a range of $12.9 billion to $13.9 billion, which is in-line with a Street estimate of $13.23 billion according to data from Benzinga Pro.

The company sees third-quarter earnings per share hitting 20 cents, compared to a Street estimate of 16 cents per share.

"We are also well-positioned to capitalize on the significant growth across the AI continuum by championing an open ecosystem and silicon solutions that optimize performance, cost and security to democratize AI from cloud to enterprise, edge and client,” Gelsinger said.

Chief Financial Officer David Zinser said the company looks to make $3 billion in cost savings for 2023. Zinsler said the company remains focused on financial discipline to improve margins and cash generation.

INTC Price Action: Intel shares are up 6% to $36.42 in after-hours trading Thursday. 

Read Next: Intel Q1 Earnings Highlights: Reveneu And EPS Beat, AI Update, Guidance And More 

Photo courtesy of Intel.