Intel has projected third-quarter revenue between US$12.6 billion and US$13.6 billion, exceeding analysts’ expectations.

The chipmaker reported US$12.9 billion in revenue for the second quarter, slightly above the US$11.9 billion forecast.

However, it posted a loss of 10 cents per share, missing the estimated profit of 1 cent.

Intel faces challenges, including a loss of market share to competitors and difficulties attracting customers to its foundry business.

Additionally, the company has not yet released products to meet the growing demand for AI chips.

To address these issues, Intel has implemented cost-cutting measures, including layoffs that reduced staff by 15%.

The company plans to conclude the year with 75,000 employees, which is over 20% fewer than in the June 2025 quarter.

Intel has also scaled back on factory expansion projects, pausing developments in Germany and Poland and slowing construction in Ohio.

Despite these developments, Intel’s adjusted gross margin remains at 30% for the second quarter, significantly lower than previous levels when it dominated the data center market.

Recent Intel developments