Intel Q2 Strong, Foundry Challenge, Government Support

Intel reported Q2 revenue of $16.1 billion, up 25% year over year, with adjusted EPS of $0.42, again driven by AI infrastructure and data-center CPUs and a current-quarter outlook that topped expectations. Analysts noted that Intel's Foundry business remains a challenge and that optimism hinges on sustained AI-driven compute demand, with some observers cautioning that the beat may reflect low expectations. Shares rose in after-hours trading on the results and upbeat guidance, as the company continues expanding capex and capacity for AI deployments. Intel has been increasing investments in capacity and pursuing more manufacturing, with government stake and subsidies shaping its strategic moves. The broader market environment remained cautiously optimistic about tech and AI gains amid easing energy pressures and shifting macro sentiment.