Intel shares jump after Q3 revenue outlook beats estimates
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The news: Shares in Intel rose more than 3% to USD103 ($147) in after-hours trading after the chipmaker issued a stronger-than-expected third-quarter revenue forecast that surpassed Wall Street estimates.
The numbers: Intel reported a net loss of USD11.03 billion, widening from a USD2.92 billion loss a year earlier, primarily due to a non-operating mark-to-market charge linked to escrowed shares under its CHIPS Act agreement.
Net income swung to USD2.2 billion from a USD441 million loss a year earlier. Second-quarter revenue climbed 25% to USD16.13 billion from USD12.86 billion.
For the third quarter, Intel expects revenue of between USD15.8 billion and USD16.8 billion, with earnings of 31 US cents per share and adjusted earnings of 38 US cents per share.
The context: Analysts surveyed by Bloomberg had expected third-quarter revenue of USD15.1 billion, putting Intel’s guidance comfortably ahead of consensus.
The outlook highlighted improving demand from data centre customers seeking chips to support artificial intelligence computing.
Second-quarter revenue also beat consensus estimates of USD14.4 billion, according to data compiled by Bloomberg.
However chief financial officer Dave Zinsner said Intel is increasing equipment spending to ensure it can meet demand, despite earlier plans to reduce capital expenditure from the previous year. The company expects the capital spending of about USD20 billion this year, Bloomberg reported.
