The company also said it is projecting Q3 revenue of between $15.8 billion and $16.8 billion, well ahead of the $15.06 billion estimate.

Q2 data center revenue topped out at $6.3 billion, versus analysts' estimates of $5.54 billion. Client computing revenue was $8.9 billion. Projections called for $7.99 billion.

"We delivered a strong second quarter, exceeding our financial guidance on robust demand and improved execution, including volume upside driven by higher factory yields and improved cycle times," Intel CFO Dave Zinsner said in a statement.

"AI-driven compute continues to strengthen, and to support expected growth this year and next across products and foundry, we are meaningfully increasing our investments in equipment, clean room space, and substrates."

The earnings report comes after the Philadelphia Semiconductor Index (^SOX) fell into a bear market last week following a run-up in semiconductor stocks over the past few months.

Earlier this week, Intel confirmed it will lay off employees in its data center business, sending shares higher.

"As part of our broader strategy to become a more focused and efficient company, Intel's Data Center Group (DCG) is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success," an Intel spokesperson told Yahoo Finance.

"We are committed to treating all impacted employees with respect and providing resources to support them through this transition," they added.

Intel stock has rocketed since the start of the year, rising 178% as CEO Lip-Bu Tan continues an aggressive turnaround effort. The company has also benefited from investments by the Trump administration and Nvidia (NVDA), as well as an increased emphasis on central processing units (CPUs) as the tech industry turns toward AI agents.