Intel Corp. crushed Wall Street expectations in its first-quarter earnings results, reporting a 7 percent revenue increase to $13.6 billion. This total exceeded analyst projections by more than $1 billion, driven largely by strong demand for its CPUs from data centers.
The chipmaker reported earnings of 29 cents per share before certain costs, such as stock compensation. Following the announcement, Intel shares surged as the business gains momentum.
Looking forward, Intel provided a strong sales forecast for the second quarter that exceeds expectations. The company is signaling that it is beginning to benefit from the massive build-out of artificial intelligence infrastructure, specifically through booming demand for server processors used for AI in data centers.
These results suggest that Chief Executive Lip-Bu Tan is making progress on a challenging comeback plan. Although Intel has been a Wall Street darling of late even as the business struggled for momentum, the current upbeat outlook indicates that efforts to turn around the business are starting to pay off.