Key Highlights
- Intel’s adjusted Q1 earnings per share reached 29 cents, dramatically exceeding Wall Street’s 2-cent projection
- First-quarter revenue climbed to $13.6B, representing 7% annual growth and surpassing the $12.4B consensus
- Data center segment posted 22% growth to $5.1B, fueled by expanding CPU requirements for AI applications
- Second-quarter outlook projects revenue between $13.8B–$14.8B, significantly above analyst forecasts
- Shares have surged more than 80% year-to-date in 2026, approaching the record closing price from August 2000
Intel delivered a stunning first-quarter performance on Thursday that far exceeded Wall Street projections. The chipmaker reported adjusted earnings of 29 cents per share versus the consensus estimate of just 2 cents, while revenue of $13.6 billion handily beat expectations of $12.4 billion.
Shares skyrocketed approximately 24% during Friday’s premarket session. Trading at $82.77, the stock would eclipse its all-time closing record of $74.88 established in August 2000 — a benchmark that seemed unattainable merely one year ago.
Revenue increased 7.2% compared to the prior year period. This marks a significant turnaround following year-over-year contractions in five of the previous seven quarters, signaling a potential inflection point for the semiconductor giant.
The data center business emerged as the clear winner. Sales in this segment surged 22% to reach $5.1 billion, driven by accelerating demand for CPUs serving AI infrastructure. The traditional CPU market has found renewed relevance within the AI ecosystem, especially as agentic computing applications require more robust general-purpose processing capabilities.
“The CPU is reinserting itself as the indispensable foundation of the AI era,” CEO Lip-Bu Tan stated during the earnings conference call. “This isn’t just our wishful thinking, it’s what we hear from our customers.”
Personal computer sales demonstrated resilience despite component shortages that have pushed memory prices higher. Intel launched its Core Ultra Series 3 processor in January, followed by the Xeon 6+ data center chips in March.
Robust Second Quarter Outlook
Intel provided second-quarter guidance calling for revenue of $13.8B to $14.8B alongside adjusted earnings per share of 20 cents. Wall Street analysts had anticipated $13.07B in sales and just 9 cents per share. The substantial gap between guidance and expectations is noteworthy.
Gross margin expansion is also projected, addressing another area where Intel has faced challenges in recent quarters.
However, profitability remains elusive. The company’s net loss expanded to $4.28 billion in the first quarter, partially attributable to a $4.1 billion restructuring charge related to goodwill impairment at Mobileye. The foundry division posted a $2.4 billion loss.
Intel’s manufacturing operations continue to present the biggest long-term question mark. While the 18A process technology is competitive, Intel remains its own primary customer. Yield challenges affecting certain 18A wafers have created uncertainty about readiness for third-party clients.
Strategic Partnership with Musk Expands Opportunities
The storyline took an interesting turn this month when Intel revealed its participation in Elon Musk’s Terafab semiconductor facility in Austin, Texas — producing chips for SpaceX, xAI, and Tesla. During Tesla’s first-quarter earnings discussion, Musk verified that Tesla intends to leverage Intel’s upcoming 14A process technology at the complex.
“By the time Terafab scales up, 14A will probably be fairly mature or ready for prime time,” Musk commented.
The 14A node isn’t slated for commercial launch until 2028.
Intel also recently repurchased a 49% ownership stake in its Irish fabrication facility from Apollo Global Management for $14 billion — indicating CEO Tan’s commitment to the foundry strategy over the long haul.
CFO David Zinsner mentioned to CNBC that advanced packaging capabilities — representing one of Intel’s core competitive advantages — could generate billions in revenue per major customer. The current packaging client roster includes Amazon, Cisco, SpaceX, and Tesla.
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