Intel rises as Q1 beat and upbeat Q2 outlook extend AI-server rally

Intel (INTC) is trading higher today as investors continue to digest a stronger-than-expected first-quarter 2026 print and a better-than-feared second-quarter outlook. The move is being framed as an extension of the post-earnings repricing tied to improving demand for server CPUs used in AI infrastructure and a more constructive near-term profitability setup versus expectations.

In its Q1 2026 update, Intel posted non-GAAP EPS of $0.29 and guided Q2 2026 revenue to $13.8 billion–$14.8 billion, with non-GAAP EPS of $0.20. The outlook also implied gross margin stability/improvement versus what investors had been bracing for during the company’s multi-quarter turnaround narrative, reinforcing the view that near-term fundamentals are catching up to the stock’s momentum.

Management commentary has emphasized that demand is running ahead of supply in parts of the portfolio most levered to AI-server buildouts, while manufacturing execution is showing progress. Specifically, the company highlighted improving yields across newer process nodes and pointed to the early ramp contribution from Intel 18A as part of the supply and margin story investors are monitoring most closely.

After the sharp run-up into late April, the next catalyst is whether Intel can keep converting AI/data-center demand into sustained revenue growth while narrowing foundry losses and improving cash generation. Investors will be focused on any incremental updates on 18A ramp, advanced packaging capacity/backlog, and whether Q2 results track toward the upper end of the company’s guided ranges.