Intel’s share price increased by 20% in after-hours trading following the release of its first-quarter reporting indicating a shift towards AI-driven hardware.
The financial report states that Intel’s earnings and revenue exceeded analyst forecasts.
Meanwhile, the Trump administration alone, has increased the US government’s ownership of the business by almost 300%.
The report indicates that while adjusted earnings per share recorded $0.29 against a $0.01 expectation that many analysts had predicted, revenue came in at $13.58 billion against a $12.3 billion estimate, a 7.2% increase year over year.
Additionally, the company offered proof that its approach to incorporating cutting-edge AI capabilities throughout its product line is improving the outlook and producing outcomes.
Intel’s Data Center and AI (DCAI) division, which produced results that significantly beyond Wall Street projections, was at the center of the company’s financial turnaround.
For the quarter, the DCAI division brought in $5.05 billion, up 22.4% from the same time previous year. The $4.41 billion that analysts had predicted was significantly less than this amount.
Per the data, its Xeon 6 CPUs and Gaudi 3 AI accelerators have been increasingly popular among cloud service providers and enterprise clients.
According to Lip-Bu Tan, CEO of Intel, who joined the company just a year ago, “the next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.”
Looking ahead, Intel has released a strong projection for the second quarter, estimating revenue between $13.8 billion and $14.8 billion.
”This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.” The $13 billion that investors had anticipated is far less than this guidance.
