Intel Stock Jumps on AI-Driven Earnings as China Server CPU Prices Climb Over 40%

• Intel stock climbed nearly 6% in premarket trading after the chipmaker beat second-quarter earnings estimates and issued stronger-than-expected guidance
• The rally followed renewed discussion around the “Inverse Cramer Effect” after Jim Cramer’s X post, but the company’s earnings and outlook provided the primary catalyst for the rebound
• Despite mixed analyst sentiment, Intel’s AI outlook received another boost as reports of long-term server CPU agreements in China pointed to sustained demand for enterprise AI infrastructure

Intel stock climbed nearly 6% in premarket trading on Friday after the chipmaker delivered a stronger-than-expected quarterly performance. It raised its outlook for the current quarter. The rally came after weeks of pressure that had erased more than a quarter of the company’s value from its June peak. This left investors questioning whether Intel’s AI strategy could keep pace with rivals.

Also Read: SWIFT XRP Story Grows as 50-Bank Pilot Includes Major Ripple Partner Banks

Intel Stock Rebounds as AI Demand Drives Earnings Beat

Intel stock rose after the company reported second-quarter revenue of $16.13 billion, comfortably ahead of Wall Street estimates of $14.42 billion. Meanwhile, adjusted earnings came in at $0.42 per share, nearly double analysts’ expectations of $0.21.

The company also forecast third-quarter revenue between $15.8 billion and $16.8 billion. This exceeds the consensus estimate of $15.1 billion. Adjusted earnings guidance of $0.38 per share also topped expectations of $0.27.

Chief Executive Officer Lip-Bu Tan credited the strong performance to growing demand for AI infrastructure. This is mostly as enterprises adopt agentic AI systems that require greater computing capacity. He added,

“AI is driving unprecedented demand for compute. As we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise.”

Intel’s Data Center and AI business generated $6.26 billion in revenue during the quarter, beating analyst forecasts, while adjusted gross margin improved to 41.8%.

The results also prompted Intel to raise its capital expenditure forecast for the year to $20 billion. This is up from $18 billion, showing confidence that demand for AI-related processors will remain strong.

The Intel stock briefly slipped around 5% after CNBC host Jim Cramer posted on X. This revived online discussion of the so-called “Inverse Cramer Effect.” While traders quickly drew comparisons to the long-running market meme, Intel’s subsequent recovery shifted attention back to the company’s improving fundamentals.

Also Read: Trump Tariffs Return After Supreme Court Loss as New Trade Plan Hits 99% of US Imports

Analysts Remain Divided Despite Stronger AI Outlook

Wall Street’s reaction remains mixed. Mizuho lowered its price target on Intel stock to $109 from $135, while maintaining a Neutral rating. They cited margin pressure and execution risks tied to Intel’s foundry business despite stronger AI demand.

Other firms were more optimistic. Following the earnings report, Seaport Global raised its price target, while HSBC reiterated its bullish stance. Again, they pointed to improving manufacturing execution and stronger-than-expected demand for server CPUs.

The optimism extends beyond Intel’s latest quarter. Reuters recently reported that Intel and AMD are negotiating longer-term server processor supply agreements with Chinese data center operators as AI infrastructure demand continues to tighten supply. Prices for some server CPUs in China have climbed more than 40% since the start of the year, underscoring how rapidly demand is expanding beyond AI accelerators and into the broader semiconductor ecosystem.

Also Read: US Housing Market Hits Record Home Prices as Job Postings Fall 37% Since 2022