Shares of Intel surged 12.1% on Wednesday, reaching a new record high after the semiconductor giant highlighted rapidly increasing demand for its data center chips. Analysts noted that Intel is benefiting from a shift in artificial intelligence trends. After missing the initial wave of the AI boom, Intel now finds itself well-positioned to capitalize on recent technological advancements. While the training of AI models heavily relies on graphics processors designed by companies like Nvidia and Advanced Micro Devices, the rise of agentic AI is boosting demand for the type of central processors manufactured by Intel. Following several years of declining sales, Intel's first-quarter revenue increased 7% year-over-year to $13.6 billion. Intel's Data Center and AI group showed particularly strong growth, with revenue jumping 22% to $5.1 billion. Overall, Intel's adjusted net profit soared 156% to $1.5 billion, or earnings of $0.29 per share. This performance significantly surpassed Wall Street expectations, which had forecast earnings of just $0.01 per share.
Management issued an optimistic forecast. Looking ahead, Intel anticipates second-quarter revenue to be between $13.8 billion and $14.8 billion, with adjusted earnings per share of $0.20. This compares to revenue of $12.9 billion and an adjusted loss per share of $0.10 in the second quarter of 2025. New partnerships with tech giants such as Alphabet's Google, Tesla, and others are expected to aid Intel's further expansion. The company's Chief Financial Officer, David Zinsner, stated, "We remain focused on maximizing our factory network to improve available supply and meet customer demand throughout the year."
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