Artificial intelligence has become a market that rewards execution, not promises. Investors have poured hundreds of billions of dollars into companies building AI infrastructure, yet leadership can change quickly when technology shifts or customers choose different suppliers. That makes earnings season especially important because it separates companies making real progress from those still telling turnaround stories.
Intel’s (INTC) latest quarterly results showed meaningful progress across the businesses that matter most for AI, helping explain why the stock has climbed 322% over the past year even after retreating 27% from the all-time high it reached last month. Even so, the numbers suggest investors may still find better opportunities elsewhere in the AI ecosystem.
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Intel’s AI Businesses Finally Delivered
Intel’s second-quarter earnings release painted a picture few investors would have expected a year ago. Revenue, profit, and guidance all exceeded Wall Street expectations, but the bigger story was where that growth came from.
The company’s AI-related businesses produced standout performances, particularly its foundry operations. Intel’s advanced 14A manufacturing process appears to have found its footing after CEO Lip-Bu Tan warned last year that Intel might abandon the node altogether if it failed to land a major outside customer.
That milestone matters because Intel’s manufacturing ambitions have long been viewed as the company’s biggest wildcard. Winning external customers validates years of investment while giving Intel another way to participate in the AI buildout beyond selling processors.
Intel’s turnaround has also become one of the market’s biggest surprises. After years of disappointing execution, INTC stock has become one of the S&P 500’s ($SPX) best performers over the past 12 months. Even after the recent pullback, shareholders remain far ahead of where they started the year.
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