An Intel Xeon 6+ data center CPU wafer on display at Intel Technology Tour in September 2025. Intel Xeon 6+ is expected to launch in the first half of 2026.
Courtesy: Intel
Intel reported first-quarter earnings Thursday that blew past Wall Street’s expectations, as the struggling chipmaker shows signs of a revival.
Shares of the U.S. chipmaker jumped 15% in after-hours trading.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
- Earnings per share: 29 cents adjusted vs. 1 cent expected
- Revenue: $13.58 billion vs. $12.42 billion expected
Intel has been a Wall Street darling of late, with its stock up more than 80% this year as of Thursday’s close, after soaring 84% in 2025. The chipmaker has been championed by the Trump administration, which turned the U.S. government into the largest shareholder last year as part of an effort to bring chip manufacturing stateside. Nvidia and SoftBank also invested billions in Intel.
But the business, which fell way behind rivals Nvidia and Advanced Micro Devices during the early stages of the artificial intelligence boom, hasn’t been seeing much momentum.
That could finally be changing. Revenue increased 7.2% from $12.67 billion a year earlier. That follows year-over-year revenue declines in five of the past seven quarter.
Intel said it expects second-quarter revenue between $13.8 billion and $14.8 billion, and adjusted earnings per share of 20 cents. That’s well above analyst expectations for revenue of $13.07 billion and EPS of 9 cents.
Intel saw the strongest growth in its data center business, where it’s starting to get traction in AI thanks to surging demand for central processing units (CPUs). Revenue in that division climbed 22% to $5.1 billion.
The once-sleepy CPU market has taken off as agentic workloads shift compute needs beyond Nvidia’s graphics processing units (GPUs) that have ruled AI thus far. That growing CPU demand underpinned Intel’s recent $14 billion purchase of a 49% stake in its Ireland chip fab that it had previously sold to Apollo Global Management.
Intel is still losing money. The company said its net loss widened to $4.28 billion, or 73 cents per share, from $887 million, or 19 cents a share a year earlier.
Intel has an unusual strategy when it comes to chips. As an integrated device manufacturer, Intel makes its own products while also manufacturing the silicon that powers them. Most chipmakers outsource the complex and costly manufacturing process to giant chip fabrication plants run by Taiwan Semiconductor Manufacturing Company.
Foundry revenue at Intel rose 16% from a year go to $5.4 billion, though much of its foundry business consists of making its own chips.
Intel’s Core Ultra Series 3 processor started selling in PCs in January, while its newest Xeon 6+ data center processors hit the market in March. Soon after, Google committed to using multiple generations of the Intel CPU to run AI workloads in its data centers.
Intel’s latest PC and data center processors are made on 18A process node at a giant new fab in Arizona. For now, Intel remains the only major customer of its 18A chip fabs, despite it being technologically similar to TSMC’s 2-nanometer node.
The challenge will be convincing longtime TSMC customers to make the leap.
Intel is recovering from years of delays on previous nodes, and some 18A wafers have had defects, making for a lower number of usable chips per wafer, typically referred to as yield.
—CNBC’s Kristina Partsinevelos contributed to this report.
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