Intel Secures $50B Orders for $6.5B Bond, Q1 Revenue Up 7.2%
Intel secured $50B of investor orders for a $6.5B bond sale priced at 1.3 percentage points over Treasuries, funding its $14.2B buyback of a 49% stake in its Irish Fab 34 venture. Q1 revenue climbed 7.2% to $13.6B with a 41% gross margin, though foundry operations remain cash-negative through 2027.
1. $6.5B Bond Sale Attracts $50B Orders
Intel priced a five-part $6.5B bond at yields 1.3 points over Treasuries after receiving $50B of investor demand. Proceeds will fund a $14.2B repurchase of its 49% stake in the Fab 34 Irish joint venture previously held by Apollo Global Management.
2. Strong Q1 Results
In Q1, revenue rose 7.2% year-over-year to $13.6B and gross margin reached 41% driven by robust Data Center and AI CPU demand. This performance surpassed expectations and lifted shares to record levels, highlighting momentum in its core server processor business.
3. Foundry Operations and Cash-Flow Outlook
Despite top-line strength, foundry operations remain loss-making with negative free cash flow projected through 2027. Rating agencies have flagged execution risks as Intel ramps up new production technology and integrates its expanded Irish facility.