Intel Beats Forecasts
- Intel reported stronger-than-expected results and issued guidance that surprised the market positively. - The company forecast second-quarter revenue above estimates and said its custom-chip (ASIC) business is on track for over $1 billion this year. - The results suggest revived CPU and ASIC demand tied to AI workloads is lifting revenue and investor confidence (reuters.com).
Intel told investors on April 23 that its second-quarter sales should top Wall Street estimates, and the stock jumped in after-hours trading. (reuters.com) The chipmaker said second-quarter revenue should land between $13.8 billion and $14.8 billion, above analysts’ average estimate of about $13.1 billion. Intel also guided for adjusted earnings of 20 cents a share, compared with analyst expectations of 9 cents. (intel.com) (cnbc.com) For the quarter ended March 28, Intel reported $13.58 billion in revenue, up from $12.7 billion a year earlier, and adjusted earnings per share of 29 cents. MarketBeat data cited by financial media had analysts looking for about $12.32 billion in revenue and 1 cent in earnings per share before the report. (intel.com) (marketbeat.com) The strongest growth came from the data center business, where Intel said revenue rose 22% to $5.1 billion. Reuters said demand for server processors tied to artificial intelligence work in data centers helped drive the outlook. (cnbc.com) (reuters.com) Intel also said its application-specific integrated circuit business, or custom chips built for one job, is on track to generate more than $1 billion in 2026. Chief Executive Lip-Bu Tan said the next phase of artificial intelligence is increasing demand for Intel’s central processing units, wafer manufacturing and advanced packaging services. (reuters.com) (intel.com) That matters because Intel has spent the past several quarters trying to prove it can benefit from the artificial intelligence boom after lagging Nvidia and Advanced Micro Devices in investor enthusiasm. Reuters said the latest forecast added to an 81% rebound in Intel shares this year through April 23. (reuters.com) Intel’s investor materials said the company beat the high end of its own guidance on revenue, gross margin and earnings per share for a sixth straight quarter. The company scheduled its earnings call for 2 p.m. Pacific time on April 23, with management using that call to frame the results around demand for inference and “agentic” artificial intelligence systems. (intel.com 1) (intel.com 2) Investors reacted fast: Reuters reported the shares surged 19% in extended trading after the release. For Intel, the immediate test is whether that stronger demand holds through the June quarter the company just guided. (reuters.com)
