Key Highlights

  • Intel’s Q1 adjusted earnings per share reached 29 cents, vastly exceeding Wall Street’s 2-cent projection
  • First-quarter revenue climbed to $13.6B, representing 7% annual growth and surpassing the $12.4B forecast
  • Data center division revenue surged 22% to $5.1B, fueled by increased CPU adoption for AI applications
  • Second-quarter revenue outlook of $13.8B–$14.8B significantly exceeds analyst projections
  • Shares have rallied over 80% year-to-date in 2026, approaching the all-time closing record from August 2000

Intel delivered first-quarter earnings Thursday that significantly exceeded Wall Street projections. The company reported adjusted earnings per share of 29 cents compared to analyst estimates of 2 cents, while revenue reached $13.6 billion versus the anticipated $12.4 billion.

Shares climbed approximately 24% during Friday’s premarket session. Trading at $82.77, the stock would surpass its historical closing peak of $74.88 established in August 2000 — a level that appeared unattainable merely a year ago.


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Intel Corporation, INTC

Revenue increased 7.2% compared to the previous year. This marks a reversal after the company experienced year-over-year revenue declines in five of the last seven quarters, making any upward movement noteworthy.

The data center business emerged as the performance leader. This segment generated $5.1 billion in revenue, up 22%, driven by expanding CPU requirements for artificial intelligence applications. The central processing unit has reclaimed its position as a critical component in AI infrastructure, especially as agentic computing requires additional general-purpose computational capability.

“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 revenue remained resilient despite memory shortages pushing prices upward. Intel’s Core Ultra Series 3 processor launched in January, while its Xeon 6+ data center processors arrived in March.

Second-Quarter Outlook Exceeds Projections

Intel provided second-quarter revenue guidance of $13.8B to $14.8B alongside adjusted earnings per share of 20 cents. Wall Street analysts had projected $13.07B in revenue and 9 cents EPS. The variance between guidance and estimates stands out.

Gross margin expansion is also anticipated, addressing another challenge the company has faced in recent periods.

The chipmaker continues to record losses overall. Net loss expanded to $4.28 billion during Q1, partially attributed to a $4.1 billion restructuring expense related to goodwill impairment at Mobileye. The foundry division posted a $2.4 billion loss.

Intel’s manufacturing operations represent the primary long-term challenge. While the 18A process node demonstrates technological competitiveness, Intel remains the sole major customer deploying it. Yield challenges on certain 18A wafers have prompted concerns regarding external client readiness.

Musk Collaboration Introduces Fresh Momentum

The outlook evolved this month following Intel’s announcement of participation in Elon Musk’s Terafab chip manufacturing complex in Austin, Texas — producing semiconductors for SpaceX, xAI, and Tesla. During Tesla’s Q1 earnings discussion, Musk verified that Tesla intends to utilize Intel’s forthcoming 14A process at this facility.

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

The 14A node is scheduled to launch around 2028.

Intel recently reacquired a 49% ownership stake in its Ireland fabrication facility from Apollo Global Management for $14 billion — indicating CEO Tan’s confidence in the foundry business trajectory.

CFO David Zinsner informed CNBC that advanced packaging — an area where Intel maintains genuine competitive advantage — could generate billions in revenue per major customer. Current packaging clients include Amazon, Cisco, SpaceX, and Tesla.