Intel (INTC) Stock Rockets 24% Following Blockbuster Q1 Earnings Report

Key Highlights

• First-quarter adjusted earnings per share reached 29 cents, dramatically exceeding Wall Street’s 2-cent projection
• Total sales reached $13.6 billion, climbing 7% from last year and surpassing the $12.4 billion analyst forecast
• Data center segment revenue surged 22% to $5.1 billion, fueled by increased CPU purchases for artificial intelligence applications
• Second-quarter outlook projects revenue between $13.8 billion and $14.8 billion, significantly above consensus estimates
• Shares have climbed more than 80% year-to-date in 2026, approaching the company’s record closing price from August 2000

Intel delivered first-quarter financial results Thursday that significantly exceeded analyst projections. The chipmaker reported adjusted earnings of 29 cents per share versus the 2-cent Wall Street consensus, while quarterly sales of $13.6 billion outpaced expectations of $12.4 billion.

Shares surged approximately 24% during Friday’s premarket session. Trading at $82.77, the stock is positioned to eclipse its all-time closing record of $74.88 established in August 2000 — a remarkable recovery few market observers would have predicted a year ago.

Intel Corporation, INTC

Quarterly revenue increased 7.2% compared to the prior-year period. This marks a notable turnaround after the company posted year-over-year revenue declines in five of the previous seven quarters.

The data center business emerged as the clear winner. Sales in this segment jumped 22% to reach $5.1 billion, driven by expanding demand for central processing units in artificial intelligence infrastructure. The traditional CPU market has regained strategic importance within the AI technology stack, especially as agentic computing applications require more versatile processing capabilities.

“The CPU is reinserting itself as the indispensable foundation of the AI era,” CEO Lip-Bu Tan said on the earnings call. “This isn’t just our wishful thinking, it’s what we hear from our customers.”

Personal computer revenues exceeded projections despite supply constraints in memory components pushing prices higher. Intel launched its Core Ultra Series 3 processor in January, while the Xeon 6+ data center chips debuted in March.

Second-Quarter Outlook Exceeds Expectations

Intel issued second-quarter guidance calling for revenue between $13.8 billion and $14.8 billion with adjusted earnings per share of 20 cents. Wall Street analysts had projected $13.07 billion in sales and 9 cents per share. The substantial variance caught market attention.

Gross profit margins are projected to expand as well, addressing an area where the company has faced persistent challenges in recent years.

Despite the positive results, Intel continues to report net losses. The first-quarter net loss expanded to $4.28 billion, partially attributable to a $4.1 billion restructuring charge connected to goodwill impairment at Mobileye. The foundry division posted a $2.4 billion loss.

Intel’s manufacturing operations remain the company’s most significant strategic challenge. While its 18A process technology is competitive from a technical standpoint, Intel remains essentially the sole major customer utilizing it. Production yield concerns on certain 18A wafers have generated doubts about preparedness for third-party manufacturing clients.

Strategic Alliance With Musk Reshapes Narrative

The company’s trajectory took an unexpected turn this month when Intel revealed its participation in Elon Musk’s Terafab semiconductor manufacturing complex in Austin, Texas — producing chips for SpaceX, xAI, and Tesla. During Tesla’s first-quarter earnings discussion, Musk confirmed that Tesla intends to utilize Intel’s upcoming 14A process technology at the facility.

“By the time Terafab scales up, 14A will probably be fairly mature or ready for prime time,” Musk said.

The 14A process node isn’t scheduled to launch until 2028.

Intel also recently reacquired a 49% ownership stake in its Irish manufacturing facility from Apollo Global Management for $14 billion — indicating CEO Tan’s confidence in the foundry business over the long term.

CFO David Zinsner informed CNBC that advanced packaging services — representing one of Intel’s core competitive advantages — could generate billions in revenue per major customer. The company’s current packaging client roster includes Amazon, Cisco, SpaceX, and Tesla.

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