Intel Shares Jump 10% After Q1 Beat, AI Segment Rises 22%
Intel reported Q1 revenue of $13.58 billion and adjusted EPS of $0.29, both above expectations, with its data center and AI segment growing 22% to $5.1 billion. A Buy upgrade and raised price target from a broker spurred a roughly 10% share price rally.
1. Q1 financial beat
Intel reported first-quarter revenue of $13.58 billion and adjusted earnings of $0.29 per share, both surpassing analyst forecasts. Its data center and AI segment expanded 22% year-over-year to $5.1 billion, driven by robust demand for server processors.
2. Broker upgrade fuels rally
A prominent brokerage raised Intel to a Buy rating and lifted its price target, citing strengthening fundamentals tied to artificial intelligence workloads. This endorsement triggered a near 10% surge in the stock price during trading.
3. AI partnerships and manufacturing
Intel highlighted partnerships with Google and participation in the Terafab initiative as signs of deepening AI relevance. The company also reaffirmed progress on its 18A manufacturing process and provided a second-quarter revenue outlook of $13.8 to $14.8 billion with adjusted earnings near $0.20 per share.