Intel shares jumped roughly 12 percent in after-hours trading after the chipmaker issued a third-quarter revenue forecast that beat Wall Street expectations. The company projected sales of $15.8 billion to $16.8 billion for the current quarter, surpassing the analyst consensus of $15.1 billion. Intel also guided for adjusted earnings per share of 38 cents, above the 27 cents analysts had projected.
The stronger-than-expected outlook follows robust second-quarter results. Revenue rose 25 percent to approximately $16.1 billion in the period ended June 27, while adjusted earnings reached 42 cents per share.
In strategic developments, Intel said it plans to mass-produce chips using its 14A process technology by 2028. The company also scrapped plans to build a factory in Magdeburg, Germany. Meanwhile, the U.S. government acquired an approximately 10 percent stake in Intel in exchange for billions in subsidies.