Intel Corp. (INTC:US) shares opened 6% higher on Friday after the chipmaker reported second-quarter results that came ahead of analyst expectations. Moreover, the company’s Q3 outlook indicates that short-term challenges with inventory will be ironed out.
Moreover, the company’s CEO added that Intel remains on track to meet its target of regaining manufacturing leadership by 2025.
For the second quarter, Intel reported adjusted revenue of $12.9 billion, representing a 15% year-over-year decline. Still, it was better than the expected $12 billion. The Q2 outperformance was driven by Intel’s largest segment Client Computing while Datacenter & AI also helped fuel a Q2 beat.
“Our Q2 results exceeded the high end of our guidance as we continue to execute on our strategic priorities, including building momentum with our foundry business and delivering on our product and process roadmaps,” said CEO Pat Gelsinger.
On the bottom line, the company made a profit of $0.13 per share, a surprise given that the consensus was looking for a loss of $0.3. The adjusted gross margin came in at 39.8% and is expected to further expand to 43% in the third quarter, Intel said.
The chipmaker also projected Q3 revenue at $13.4 billion (the midpoint of an offered range), ahead of the consensus of $13.28 billion. The adjusted EPS is seen at $0.20, while analysts projected $0.13.
Intel shares were seen trading around the $36 mark on Friday.