Intel Corporation (INTC) reported fourth-quarter 2025 revenues of $4.74 billion, marking a 15% sequential growth—the largest in a decade for its datacenter business—driven by high demand for Xeon 6 processors (Granite Rapids). This rebound follows a downturn due to supply chain constraints, with an operating margin of 26.4% for the quarter. The datacenter segment’s growth is primarily propelled by the server business and the AI industry’s demands.
Intel’s custom Application-Specific Integrated Circuit (ASIC) business also saw substantial growth, increasing over 50% in 2025 and 26% sequentially in Q4, achieving an annual revenue run rate exceeding $1 billion. A report from Grand View Research estimates the AI infrastructure market was valued at $223.45 billion in 2024, with a projected compound annual growth rate of 30.4% through 2030, indicating significant opportunities ahead for Intel.
Meanwhile, competitors like Advanced Micro Devices (AMD) are gaining traction with a projected 60% annual revenue growth in the datacenter segment over the next few years, while Broadcom, Inc. (AVGO) expects a 140% surge in AI revenues year-over-year to $10.7 billion. Intel’s stock has risen 81.8% over the past year, outpacing industry growth of 39.1%, though earnings estimates for 2026 and 2027 have declined recently.
