Intel Corporation's (INTC.US) conference call: unprecedented demand for products, shortages of storage and logic chips will continue, capital expenditure for the next two years will be significantly increased.

Intel Corporation's financial report for the second quarter showed strong performance in revenue, profit, and gross margin, exceeding market expectations for the seventh consecutive quarter. The management revealed that the company is accelerating its transformation to "AI-first" to address the unprecedented wave of computing infrastructure construction. According to Wall Street Journal, after-market trading on July 23rd, Intel Corporation reported a nearly 12% increase in revenue compared to analyst expectations, with a 25% year-on-year revenue growth for the quarter, the strongest in nearly fifteen years. The key driving force behind the better-than-expected financial report is the explosion of the AI business. The CEO of Intel Corporation, Chen Liwu, stated that the AI-driven business saw over 70% year-on-year growth, including record growth in the data center business, contributing to around 70% of total revenue. Chen Liwu emphasized that Intel Corporation is in a strategic position to benefit from the large-scale construction wave of AI infrastructure, with strategic assets in x86 CPUs, advanced packaging, and wafer foundry. He stated, "Today, we are seeing the strongest revenue growth in fifteen years. Our core message is simple: demand for our products continues to outpace our growing supply." Additionally, the management disclosed that the 18A process yield and capacity ramp exceeded expectations, and the key indicators for the next-generation 14A process also surpassed internal targets. The company announced actively locking in supplier procurement orders and accelerating clean room construction, signaling clear expansion intentions. The explosive demand for AI computing power is the biggest bottleneck for Intel Corporation. Due to this, the company announced that it is raising its capital spending forecast for 2026 to over $20 billion, significantly higher than the initial projection, and anticipates a significantly higher capital expenditure in 2027 compared to 2026. The CFO, David Zinsner, revealed that Intel Corporation's total capital expenditure on tools and factories in the US is close to $100 billion from 2021 to 2026, exceeding any other semiconductor company in the same period. In conclusion, Intel Corporation reported strong financial performance in the second quarter, driven by the surge in demand for AI technologies. The company is actively investing in expanding its production capacity to meet the growing demand and capitalize on the opportunities in the AI and computing infrastructure market. This article was originally published by Wall Street View and edited by GMTEight.