Intel beat estimates on earnings and revenue last quarter as data centre revenue soared, with its shares jumping 20% in after-hours trading.
Adjusted earnings per share were US$0.29, up from $0.13 one year ago and passing LSEG-compiled estimates of $0.01. Revenue rose 7% to $13.58 billion, well above estimates of $12.42 billion.
“The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings,” said CEO Lip-Bu Tan.
“With a solid foundation in place, we are addressing this opportunity by listening to our customers and driving their success with our technical expertise and differentiated IP. This deliberate reset to how we operate drove a sixth consecutive quarter of revenue above our expectations, as well as new and deepened relationships with strategic partners.”
Data centre and artificial intelligence revenue surged 22% to $5.1 billion. Client computing group revenue climbed 1% to $7.7 billion and Intel foundry revenue increased 16% to $5.4 billion.
Its non-GAAP net loss widened from $821 million to $3.73 billion, however. Intel’s operating loss grew from $301 million to $3.14 billion, and operating expenses spiked from $4.97 billion to $8.48 billion due to restructuring costs.
The company’s second quarter guidance includes revenue of $13.8-14.8 billion and earnings per share of $0.20. This is above estimates of $13.07 billion in revenue and earnings per share of $0.09.
Intel began selling its Core Ultra Series 3 processor for PCs and its Xeon 6+ processors for data centres during the quarter. This month, it also repurchased a 49% stake in an Ireland plant that it had previously sold, as demand for its CPU chips has risen.
Shares in Intel (NASDAQ: INTC) closed 2.3% higher at $66.78, and surged a further 20% after-hours. Its market capitalisation is $335.30 billion.
