Intel Q2 Revenue Jumps 25% as Foundry Losses Top Billions
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Intel posted better-than-expected Q2 earnings with 25% year-over-year revenue growth, driven primarily by its AI data center segment.
- Intel's Data Center and AI (DCAI) segment delivered 59% year-over-year revenue growth and drove significant operating income gains for the company.
- Intel continues losing billions annually in its foundry business, a drag investors appear to be discounting.
- Intel (INTC) trades at a 48x forward P/E ratio, above Nvidia's forward earnings multiple, which the analyst flags as a contrarian valuation risk.
- Author The Asian Investor disclosed beneficial long positions in NVDA, AMD, and AVGO with no position in INTC, per Seeking Alpha's analyst disclosure.
Why it matters: Intel's AI-driven revenue surge is real, but a foundry segment posting billions in annual losses combined with a 48x forward P/E that exceeds Nvidia's suggests investors are pricing in a recovery the balance sheet has not yet delivered, leaving the stock exposed to multiple compression if foundry losses persist.
