- Intel‘s stock surged over 16% on April 23 following a Q1 earnings beat and strong Q2 guidance.
- Demand for CPUs is surging due to AI agents, driving a 22% year-over-year increase in Data Center revenue to $5.1 billion.
- The company confirmed supply constraints and announced major deals with Google and Elon Musk‘s companies.
On April 23, Intel‘s stock skyrocketed in after-hours trading following a first-quarter earnings report that shattered Wall Street expectations. The chipmaker posted adjusted EPS of $0.29 and revenue of $13.6 billion, far exceeding analyst consensus.
This surge was fueled by a robust outlook for the second quarter, with projected revenue between $13.8 and $14.8 billion. Consequently, shares were trading around $80, marking a roughly 19.95% gain after hours. Notably, this was the sixth consecutive quarter Intel exceeded its own financial forecasts.
Data center revenue, led by AI chip demand, reached $5.1 billion—up 22% year over year. CEO Lip-Bu Tan stated, “The CPU is reinserting itself as the indispensable foundation of the AI era.” He emphasized the shift from foundational models to agentic AI in the company’s official press release.
However, supply constraints persisted, limiting potential revenue growth. CFO David Zinsner confirmed revenue “would have been meaningfully higher, but demand continues to outpace our growing supply.” Meanwhile, client computing revenue also beat estimates, reaching $7.7 billion.
Intel announced major deals, including a multiyear arrangement with Google for Xeon CPUs and a collaboration with Elon Musk on the AI-focused Terafab facility. The company also confirmed it is buying back a 49% stake in a fabrication facility for $14.2 billion. Investors are treating the results as confirmation that the company’s reset is working.
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