- Intel reported its second-quarter earnings on, signaling a positive turnaround as it returned to profitability after experiencing two consecutive quarters of losses. The company's forecast also exceeded expectations, adding to the positive sentiment surrounding the announcement. As a result, the stock surged by 7% in extended trading.
- Intel's gross margin for the quarter reached nearly 40% on an adjusted basis, surpassing the company's previous forecast of 37.5%. This news comes after the company faced challenges in the first quarter, where it recorded its largest loss ever due to declining demand in the PC and server markets for its central processors.
Why it matters
Despite heavy investments in manufacturing capability, investors remain optimistic about Intel's future prospects, with a key focus on expanding gross margins. The better-than-anticipated performance in the second quarter has provided reassurance to investors, who were concerned about the company's recent losses.