Intel stock surged more than 27% in early trading Friday after a first-quarter earnings report that surpassed analysts’ expectations and offered better-than-expected Q2 guidance based on strong data center sales.
The company’s first-quarter revenue was $13.6 billion, up 7% year-over-year.
Foundry revenue at Intel rose 16% from a year go to $5.4 billion.
In Q2, Intel anticipates revenue of $13.8 billion to $14.8 billion and adjusted earnings per share of 20 cents. This surpasses analyst forecasts of $13.07 billion in revenue and 9 cents in EPS.
Lip-Bu Tan, Intel CEO, told investors, “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings. With a solid foundation in place, we are addressing this opportunity by listening to our customers and driving their success with our technical expertise and differentiated IP. This deliberate reset to how we operate drove a sixth consecutive quarter of revenue above our expectations, as well as new and deepened relationships with strategic partners.”
David Zinsner, Intel CFO, commented, “We delivered robust Q1 results, reflecting the growing and essential role of the CPU in the AI era and unprecedented demand for silicon, as well as our disciplined execution to expand available supply. We remain focused on maximizing our factory network to improve available supply and meet our customers’ needs throughout the year.”
During Tesla’s first-quarter earnings call on Wednesday, Musk stated that Tesla intends to use Intel’s upcoming 14A process to manufacture chips for for use in vehicles and robots, and in upcoming orbital datacenters for SpaceX.
During Intel’s earnings call, Tan stated, “Elon and I share a strong conviction that global semiconductor supply is not keeping pace with the rapid acceleration in demand,” adding that the two companies are “looking for unconventional ways to improve manufacturing efficiency.”
By CEO NA Editorial Staff
