Intel Shares Jump 20% on Earnings Beat and Strong AI-Driven Outlook

Intel shares surged 20 per cent in after-hours trading after the company reported first-quarter results that exceeded market expectations, supported by strong performance in its data centre and artificial intelligence segments.

The semiconductor company posted revenue of $13.58 billion, surpassing analyst estimates of $12.3 billion and marking a 7.2 per cent year-on-year increase. Adjusted earnings per share came in at $0.29, significantly above the $0.01 forecast.

Growth was led by Intel’s Data Centre and AI division, which generated $5.05 billion in revenue during the quarter, a 22.4 per cent increase from the previous year. The figure exceeded projections of $4.41 billion, reflecting rising demand for AI-focused hardware solutions.

The company said its Xeon 6 processors and Gaudi 3 AI accelerators have seen increased adoption among enterprise customers and cloud service providers, contributing to improved performance.

Chief Executive Officer Lip-Bu Tan said the next phase of artificial intelligence development is shifting toward inference and application-driven models, increasing demand for computing infrastructure. He noted that this trend is expected to drive further demand for Intel’s processing and packaging capabilities.

Looking ahead, Intel projected second-quarter revenue in the range of $13.8 billion to $14.8 billion, exceeding market expectations of around $13 billion.

The results mark a significant turnaround following a challenging period in 2025, when the company faced substantial financial losses and operational inefficiencies. During that time, the US government took a 9.9 per cent stake in Intel as part of efforts to stabilise the company.

Intel also implemented major restructuring measures, including workforce reductions and consolidation of manufacturing operations, aimed at improving efficiency and focusing on high-growth segments such as AI.

Following the latest gains, Intel shares have risen sharply from levels seen during its recent downturn, reflecting renewed investor confidence in the company’s strategic direction and recovery efforts.