Intel's revenue outlook exceeded expectations, with a significant increase in data center spending providing support.

Intel's unexpectedly strong revenue forecast for the current quarter indicates that the surge in data center spending is helping to drive the long-awaited recovery of the chip manufacturer. The company stated on Thursday that revenue for the third quarter is expected to be between $15.8 billion and $16.8 billion. Even at the lower end of the forecast range, this is significantly higher than the analysts' average estimate of $15.1 billion. This outlook highlights the progress Intel has made with its data center customer base, who are urgently seeking chips to meet the demand for artificial intelligence computing power. Revenue in this sector soared 59% in the previous quarter, more than twice the overall revenue growth for Intel. After the performance announcement, Intel's stock price rose by about 10% in after-hours trading. Prior to the earnings report, the stock had already more than doubled this year, reflecting the increasing market confidence in Intel's recovery plan.