San Francisco: Intel’s upcoming earnings report is drawing strong attention from investors as signs grow that the chipmaker’s long awaited turnaround may finally be taking shape, helped by rising demand from artificial intelligence driven data centers.
After years of struggling to keep pace with rivals, Intel is seeing renewed confidence in its strategy. The company’s shares climbed sharply through 2025, outperforming much of the wider semiconductor sector, as investors bet that demand for data center chips will support recovery.
Analysts expect Intel’s data center business to post strong growth, with revenue forecast to rise by more than 30 percent from a year earlier. The increase is largely driven by the expansion of AI infrastructure, where Intel’s server processors are used alongside powerful graphics chips to run complex workloads.
The personal computer segment, which has long been Intel’s core business, is expected to show only modest growth. While demand for PCs is stabilizing after a prolonged slowdown, Intel continues to face stiff competition from rivals such as AMD and chipmakers using Arm based designs.
Intel’s turnaround efforts are also closely tied to its manufacturing push. The company has begun rolling out new chips built on its advanced 18A process, a major test of its ability to regain leadership in chip production. However, analysts warn that yields and profitability remain under pressure, with margins expected to stay well below historical levels.
Under chief executive Lip Bu Tan, Intel has cut management layers, restructured operations and attracted major external investments, moves that have helped improve market sentiment. Still, investors are cautious, watching closely to see whether higher sales can translate into sustainable profits.
Market reaction ahead of the results has been mixed. Several analysts have upgraded Intel’s stock, pointing to stronger server demand and a gradual recovery in PCs. At the same time, broader concerns over trade policy and volatility in technology stocks continue to weigh on the sector.
Intel’s earnings will be seen as a key test of whether the company’s comeback is gaining real momentum or remains a work in progress in an industry shaped increasingly by artificial intelligence.