Intel Shares Surge 30 Percent on AI Boom
The Santa Clara-based company reported first-quarter revenue of $13.6 billion — a 7% jump year-on-year — with earnings per share coming in at $0.29. Looking ahead, Intel projected second-quarter revenue of between $13.8 billion and $14.8 billion, signaling sustained momentum.
Intel CEO Lip-Bu Tan pointed to a fundamental shift reshaping the technology landscape: "The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic."
Tan said this transition is directly amplifying demand for Intel's CPUs, wafer production, and advanced packaging solutions, marking the company's sixth consecutive quarter of above-expectation revenue — a streak that underscores a meaningful operational turnaround.
Intel Chief Financial Officer David Zinsner credited the results to "the growing and essential role of the CPU in the AI era" and "unprecedented demand for silicon," while reaffirming the company's commitment to expanding supply capacity to meet surging orders.
Divisional performance was robust across the board. The Data Center and AI segment posted $5.1 billion in revenue, surging 22% year-on-year, while the Client Computing Group edged up 1% to $7.7 billion. Intel Foundry revenue climbed 16% to $5.4 billion. The company also generated $1.1 billion in cash from operations during the quarter.
On the strategic front, Intel flagged a series of high-profile AI and infrastructure partnerships, including expanded deployment of Intel Xeon processors with Google, selection of Intel Xeon 6 as the host CPU for NVIDIA's DGX Rubin NVL8 systems, and a role as strategic partner in the Terafab project alongside SpaceX, xAI, and Tesla.
The results mark a dramatic reversal of fortune for a company that endured a bruising stretch in 2025, grappling with heavy financial losses, manufacturing setbacks, and eroding competitiveness in advanced chip segments.
The recovery received a significant boost in August 2025, when Intel reached a landmark agreement with the Trump administration under which the US government committed to investing $8.9 billion in Intel common stock — acquiring 433.3 million primary shares at $20.47 per share, equivalent to a 9.9% stake. The investment was structured as entirely passive, carrying no board representation or governance rights. Of the total, $5.7 billion was drawn from previously awarded but unpaid CHIPS Act grants, with the remaining $3.2 billion sourced from the Secure Enclave program. Both parties framed the deal as a strategic imperative for bolstering US semiconductor manufacturing and national security.
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