Justin Sullivan
Intel (NASDAQ:INTC) shares rose more than 7.5% in extended-hours trading after the semiconductor giant posted second-quarter results that topped estimates and showed signs of a recovery in the PC market.
For the period ending July 1, Intel (INTC) earned an adjusted 13 cents per share on $12.9B in revenue, as the company’s Client Computing Group generated $6.78B in revenue, above estimates.
Revenue attributed to its Data Center and AI group fell 15% year-over-year to $4B, while Network and Edge revenue dropped 38% to $1.4B. Intel’s nascent foundry unit saw a 307% surge in revenue to $232M.
The company also generated $454M in revenue attributed to Mobileye (MBLY), which it partially spun-off in October 2022.
A consensus of analysts expected the company to lose 3 cents per share on $12.14B in revenue.
AMD (AMD) and Nvidia (NVDA) shares rose in after-hours trading following the results.
Looking ahead, Intel (INTC) said it expects third-quarter revenue to be between $12.9B and $13.9B, with the mid-point above the $13.28B estimate. It also expects adjusted earnings of 20 cents per share, topping the 13-cent-per-share estimate.
The Santa, Clara, California-based Intel (INTC) also said it is on track to deliver $3B in cost savings this year.
“We remain focused on operational efficiencies and our Smart Capital strategy to support sustainable growth and financial discipline as we improve our margins and cash generation and drive shareholder value,” CFO David Zinsner said in a statement.
Intel (INTC) is holding a conference call at 5 p.m. EST to discuss the results.
