July 24 (Reuters) – Intel’s shares rose 6% in premarket trading on Friday after bullish forecasts signaled the AI boom was propelling \u200cthe chipmaker’s long-awaited turnaround. <\/p>\n
The company forecast third-quarter revenue above Wall \u200cStreet expectations and raised this year’s capital expenditure estimate to $20 billion from $18 billion. <\/p>\n
Intel’s improving outlook \u200breflects growing adoption of its data center central processing units (CPUs) by customers building infrastructure for artificial intelligence, as CEO Lip-Bu Tan works to position the company as a broader beneficiary of AI-driven semiconductor demand despite Nvidia’s lead \u200cin accelerator chips. <\/p>\n
“The capex increase \u2060not only signals confidence in cash flow upside and demand visibility from long-term agreements for products, but also confidence \u2060that Foundry customers are coming (for packaging and 14A wafers),” analysts at Melius Research said. <\/p>\n
This month’s selloff in global chip stocks has pushed Intel off record \u200bhighs, but \u200bthe shares have more than doubled \u200bthis year, driven by optimism \u200caround the company’s turnaround efforts. <\/p>\n
The strong results prompted at least six analysts to raise their price targets, leaving the median target about 8.8% above the stock’s last close, according to data compiled by LSEG. <\/p>\n
Tan has spent the past year strengthening Intel’s finances, securing backing from the U.S. government \u200cand major investors as the chipmaker seeks \u200bto play a key role in Washington’s \u200bpush to revive domestic semiconductor \u200bmanufacturing. <\/p>\n
“The aggressive capex raise is a proof point that \u200cIntel is likely to see continued \u200bcustomer acquisition as \u200bthe United States demands more domestic semiconductor manufacturing,” D.A. Davidson analysts said. <\/p>\n
Demand for data center CPUs has surged alongside the rise of \u200bAI agents, with Intel \u200cexecutives noting earlier this year that orders were running ahead of \u200bthe company’s production capacity. <\/p>\n
(Reporting by Joel Jose in Bengaluru; Editing \u200bby Amanda Cooper and Devika Syamnath) <\/p>\n","protected":false},"excerpt":{"rendered":"July 24 (Reuters) – Intel’s shares rose 6% in premarket trading on Friday after bullish forecasts signaled the…\n","protected":false},"author":2,"featured_media":542015,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,75623,6163,111,139,69,16308,2422,145],"class_list":["post-542014","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-chipmaker","tag-intel","tag-new-zealand","tag-newzealand","tag-nz","tag-premarket-trading","tag-semiconductor-manufacturing","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/542014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=542014"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/542014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/542015"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=542014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=542014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=542014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}