Intel Roars Ahead with Record Sales Growth Amid AI Boom
Intel reported its second-quarter earnings, exceeding Wall Street's forecasts and marking the company's fastest sales growth since 2011. The chipmaker posted a 25% increase in revenue from the same period last year, driven by strong demand for AI infrastructure.
Nokia saw a 9% revenue growth, with AI and cloud orders reaching €2.8 billion, more than doubling related sales. Nasdaq topped estimates, helped by the SpaceX listing, stronger data demand, and growth across all three divisions.
The Dow lost 507 points as Tesla, Alphabet, and Amazon shares sank, while oil prices rose 7% to $100.69 a barrel. This pushed bond yields higher, with the 10-year Treasury yield briefly moving above 4.7%. Intel's CEO Lip-Bu Tan attributed the demand to AI driving 'unprecedented compute'.
The company unveiled new AI systems, chips, and foundry investments, including Xeon 6+, its next data-center processor manufactured with the Intel 18A process. It also introduced OpenVINO Physical AI, an open-source software for robotics models, and formed partnerships with various companies to develop custom-chip products.