BRIEFINGS · Chips and AI hardware
Intel says AI is driving unprecedented compute demand as revenue rises 25%
Intel's CEO says AI is driving unprecedented demand for compute. Revenue rose 25% to $16.1 billion and Data Center and AI revenue rose 59%.
On 23 July Intel reported second-quarter revenue of $16.1 billion, up 25%, with Data Center and AI revenue of $6.3 billion, up 59%. The CEO said "AI is driving unprecedented demand for compute". The CFO said "AI-driven compute continues to strengthen". The GAAP net loss of $11,033 million, against $2,918 million, includes a $12,529 million mark-to-market loss on a derivative liability tied to the U.S. Government warrant agreement, which Intel treats as non-operating and excludes from its non-GAAP results. Cash from operations was $7,006 million against $2,050 million. Adjusted free cash flow was an outflow of $8,419 million against $1,050 million, after net partner contributions of -$12,216 million against +$1,250 million.
Why we file it. Its CEO and CFO cite AI demand.
How we read it. Sales are up. The net loss has a non-operating item.
Why it matters to you: Intel says AI demand for compute is strong and its sales rose, but its adjusted free cash flow was negative this quarter.
What this doesn't prove
Company statements: the release does not say how much of the 59% Data Center and AI growth is AI-related. The CEO says the strongest revenue growth in more than fifteen years was "enabled by greater speed, accountability, and customer focus". The deconsolidation of Altera in September 2025 affects year-on-year comparisons. The GAAP net loss includes a $12,529 million mark-to-market loss on a derivative liability tied to the U.S. Government warrant agreement, which Intel excludes from its non-GAAP results. Adjusted free cash flow is a non-GAAP measure: an outflow of $8,419 million against $1,050 million, after net partner contributions of -$12,216 million against +$1,250 million. Cash from operations was $7,006 million against $2,050 million, and gross capital expenditures were $2,652 million against $4,492 million. Third-quarter revenue is guidance.
Next fixture
- Whether Data Center and AI revenue keeps growing, and whether Intel gives an AI-specific figure.
- Whether adjusted free cash flow improves in the third quarter.
Sources
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