Intel is benefiting from a boom in what is known as agentic AI, where autonomous agents carry out tasks such as computer coding on behalf of human users. Its shares have declined more than 25% from a record close on June 22 amid a broader selloff in chip stocks, though shares remain up more than 170% for the year.
The results vindicate CEO Lip-Bu Tan's strategy to regain technology leadership and compete with rivals like Nvidia and Advanced Micro Devices in the booming market for AI chips. Investors are closely watching Intel's data center and contract manufacturing, or foundry, businesses as key indicators of the turnaround's success.
On a conference call with analysts, Tan said second-quarter developments prompted Intel to become "fully committed" to high-volume production of chips made with its forthcoming 14A manufacturing technology in 2028. Last year, Intel had warned it might be forced to abandon 14A if it could not find a major customer, which would have effectively put the U.S. out of the race to make the world's fastest chips.
"I'm pleased to see the increasing momentum on customer engagements for Intel 14A, and I'm increasingly confident that the 14A will be a highly competitive process," Tan said.
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