The AI boom caused demand for Intel processors to surge, and the stock rose 20% after the report.

Intel Gains New Momentum from AI

The company Intel, best known for its central processors, has finally felt the “boom” effect in artificial intelligence (AI). In a component shortage environment, demand for their CPUs was so high that even long‑stored inventory sold out. This led to first‑quarter results and revenue forecasts surpassing analyst expectations, and Intel shares rose more than 20 %.

Key Figures for Q1
Metric | Result | Analyst Forecast | Intel Expectation
Revenue (year‑over‑year) | $12.67 billion (+7.2 %) | $13.07 billion | $13.8–$14.8 billion
EPS | 9 ¢ | 9 ¢ | 20 ¢

*Quarter revenue exceeded analyst forecasts and the company’s own expectations, driving a 20 % share price increase after market close.*

Since the beginning of the year, Intel shares have risen more than 80 %, almost as much as last year (84 %).

Data‑Center Segment
- Server solution revenue grew 22 % to $5.1 billion.
- Server products account for about 40 % of Intel’s total revenue.
- In the personal computer segment, revenue reached $7.7 billion (+1.3 %).

Demand is concentrating on central processors due to the shift toward inference tasks. Lip‑Bu Tan emphasized: “CPUs are becoming an indispensable foundation in the AI era – it’s not only our expectations but also what customers tell us.” The company is actively ramping up processor production, yet demand is growing faster.

Processors with local AI acceleration brought an 8 % increase in client segment revenue. Currently more than 60 % of Intel’s client CPUs include this technology.

Contractual Segment
- Revenue grew 16 % to $5.4 billion.
- However, almost all income (about $174 million) came from internal company orders; external clients contributed only a small portion.
- The quarter ended with operating losses of $2.4 billion.

Intel has yet to attract a significant number of customers to the 18 A technology. However, Lip‑Bu Tan reported that many companies are already studying and evaluating Intel 14 A technology. This week Elon Musk announced plans to use 14 A‑based processors for his Tesla and SpaceX chips.

Technological Progress
- Series 3 (Wildcat Lake) processors on the 18 A process are now in large‑scale production, marking the best launch in five years.
- Clients will begin developing chips based on Intel 14 A in the second half of the year and early next year.

Financial Outlook
Chief Financial Officer David Zinsner expressed hope that new service offerings and expanded manufacturing will help stabilize profitability in the near term.