TLDR
- Intel’s first-quarter adjusted earnings per share reached 29 cents, demolishing Wall Street’s 2-cent projection
- Total quarterly revenue climbed to $13.6 billion, representing a 7% annual increase and exceeding the $12.4 billion consensus
- Data center segment revenues surged 22% to reach $5.1 billion, fueled by increased CPU adoption in AI infrastructure
- Second-quarter revenue forecast of $13.8 billion to $14.8 billion significantly exceeds analyst projections
- Shares have climbed more than 80% year-to-date in 2026, poised to eclipse the August 2000 all-time record close
Intel delivered a first-quarter performance Thursday that stunned analysts across Wall Street. The company’s adjusted earnings of 29 cents per share demolished consensus predictions of just 2 cents, while total revenues of $13.6 billion handily surpassed the anticipated $12.4 billion mark.
Shares skyrocketed approximately 24% during Friday’s premarket session. Trading at $82.77, the stock is positioned to break through its historic closing peak of $74.88 from August 2000 — a benchmark that would have appeared unattainable merely one year ago.
Quarterly revenues expanded 7.2% compared to the prior-year period. This marks a significant inflection point following year-over-year contractions in five of the preceding seven quarters, signaling a potential turning point for the chipmaker.
The data center business unit emerged as the clear winner. Revenues in this segment expanded 22% to reach $5.1 billion, driven by accelerating demand for central processing units powering artificial intelligence applications. The traditional CPU market has regained strategic importance within the AI infrastructure landscape, especially as agentic computing requires enhanced general-purpose computational 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 proved more resilient than anticipated despite constrained memory supplies pushing pricing upward. Intel launched its Core Ultra Series 3 processor lineup in January, while its Xeon 6+ data center processors debuted in March.
Q2 Guidance Comes In Strong
Intel projected second-quarter revenues between $13.8 billion and $14.8 billion alongside adjusted earnings of 20 cents per share. Wall Street had anticipated $13.07 billion in revenues and earnings of 9 cents per share. The substantial difference is noteworthy.
Gross profit margins are projected to expand as well, addressing another persistent challenge the company has faced in recent periods.
Despite the impressive top-line performance, Intel continues operating at a loss. The net deficit expanded to $4.28 billion during the first quarter, partially attributable to a $4.1 billion restructuring expense connected to goodwill impairment at Mobileye. The foundry division recorded a $2.4 billion loss.
Intel’s manufacturing operations remain the critical long-term question mark. While its 18A process technology demonstrates competitive capabilities, Intel remains the sole significant customer utilizing it. Production yield challenges on certain 18A wafers have generated concerns regarding preparedness for third-party clients.
Musk Partnership Adds New Chapter
The company’s trajectory shifted earlier 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 verified that Tesla intends to leverage Intel’s forthcoming 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 node isn’t anticipated to reach market until 2028.
Intel also recently reacquired a 49% ownership stake in its Irish manufacturing facility from Apollo Global Management for $14 billion — indicating Tan’s confidence in the foundry business moving forward.
CFO David Zinsner indicated to CNBC that advanced packaging services — 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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