Intel Shares Surge 22% Premarket on AI CPU Demand, Q2 Revenue Upside
Intel shares jumped 22% in premarket trade on strong AI CPU demand and an upbeat second-quarter revenue forecast positioning the stock to surpass its 2000 peak. The company also secured Tesla as a customer for its 14A chipmaking process, bolstering foundry ambitions ahead of a 2027 launch.
1. Premarket Share Surge
Intel shares jumped more than 22% in premarket trading, setting the stock on track to eclipse its 2000 dotcom-era peak at around $81 per share and lift its valuation by about $75.3 billion.
2. Upbeat Q2 Revenue Forecast
Intel forecast second-quarter revenue above Street expectations, prompting at least 14 brokerages to raise price targets; CFO David Zinsner attributed part of the upside to higher chip prices while cautioning on manufacturing execution risks.
3. Strong AI CPU Demand
Rising demand for Xeon server CPUs to power data-center AI inference workloads has driven optimism, as recognition grows of CPUs’ role in agentic AI tasks, supporting Intel’s comeback storyline.
4. Foundry Ambitions Bolstered by Tesla Deal
The chipmaker secured Tesla as a customer for its next-generation 14A manufacturing process, a symbolic win that industry analysts say validates Intel’s bid to build a foundry business capable of challenging TSMC by 2027.