Intel Shares Surge as AI-Driven Data Center Growth Fuels Massive Earnings Beat

Intel (INTC) saw its shares rally Friday after reporting first-quarter financial results that shattered Wall Street estimates, signaling a potential turnaround for the chipmaker. While the initial artificial intelligence wave heavily favored GPUs from competitors like Nvidia and AMD, the emergence of agentic AI is shifting demand back toward central processing units (CPUs), placing Intel in a strategic position to capture new growth. The company reported total revenue of $13.6 billion, representing a 7% year-over-year increase. The data center and AI segment served as the primary engine of growth, with revenue climbing 22% to $5.1 billion. Most notably, adjusted net income surged 156% to $1.5 billion, resulting in earnings per share (EPS) of $0.29—vastly outperforming the $0.01 consensus estimate. Looking ahead, Intel provided optimistic guidance for the second quarter, forecasting revenue between $13.8 billion and $14.8 billion and an adjusted EPS of $0.20. This represents a significant recovery compared to the second quarter of 2025, during which the company posted revenue of $12.9 billion and an adjusted loss of $0.10 per share. Management also highlighted new strategic partnerships with industry leaders, including Tesla and Alphabet's Google, to further its expansion. Chief Financial Officer David Zinsner emphasized that the company remains focused on maximizing its factory network to improve available supply and meet rising customer needs throughout the year.