Intel Corp (NASDAQ:INTC) projected second-quarter revenue and profit well above Wall Street expectations, driven by robust demand for its server chips used in artificial intelligence data centers, while also delivering significantly stronger-than-expected first-quarter results.
Shares rallied approximately 27% in pre-market trading on Friday following the announcement.
The company forecast second-quarter 2026 earnings per share of $0.20, compared with the consensus estimate of $0.09. Intel also guided revenue in the range of $13.8 billion to $14.8 billion, exceeding the $13.04 billion consensus forecast.
After years of operational missteps that hindered its position in the rapidly expanding AI market, CEO Lip-Bu Tan implemented a turnaround strategy that focused on strengthening the balance sheet through asset divestitures and workforce reductions.
Tan also secured strategic investments and partnerships with the U.S. government, SoftBank Group Corp., and NVIDIA Corporation, providing Intel with resources to expand manufacturing capacity and rebuild investor confidence in its long-term growth trajectory.
For the first quarter, Intel reported revenue of $13.6 billion, up 7% from $12.7 billion in the same period last year and above the $12.41 billion analyst estimate. Revenue from its data center and AI segment rose 22% year-over-year to $5.1 billion.
Earnings per share came in at $0.29, exceeding expectations by $0.27 versus the $0.02 consensus.
Separately, Elon Musk stated earlier in the week that Tesla plans to utilize Intel’s next-generation 14A manufacturing process for chips at its proposed Terafab AI facility in Austin.
The potential agreement would represent Intel’s first major customer win for its advanced manufacturing technology and a significant milestone in its efforts to expand its contract manufacturing business to compete with leading rival Taiwan Semiconductor Manufacturing.
