San Francisco – Intel delivered a blockbuster sales forecast that shattered Wall Street expectations, signaling that the long-struggling chipmaker is benefiting from the giant build-out of artificial intelligence computing. Revenue will be US$13.8 billion (S$17.6 billion) to US$14.8 billion in the June quarter, the company said on April 23. Analysts had estimated US$13 billion on average, according to data compiled by Bloomberg.
Intel shares soared 20 percent in extended trading on April 23 after the results were released, putting the stock in record territory. It had gained 81 percent in 2026 heading into the report. The upbeat outlook suggests that chief executive officer Tan Lip-Bu is making progress on a challenging comeback plan. After securing major investments in Intel in 2025, helping to strengthen the company’s balance sheet, he is now delivering on a promise to improve operations.
“Everyone is starting to direct orders to Intel, and I think we are in the early days,” said Great Hill Capital Chairman Thomas Hayes, an Intel investor, on Bloomberg Television. “This has gone from despondency to euphoria in a very short period of time.” The earnings report indicates that the demand for data center chips, essential for supporting the massive AI expansion, is driving up interest in Intel’s flagship Xeon server processors. This type of semiconductor, the central processing unit (CPU), is now a renewed focus for companies aiming to convert their AI software into revenue-generating services.
In an interview, Mr. Tan described the results as “solid” and above projections. He expects the robust demand for processors used in AI systems to continue expanding, stating the company is “laser-focused” on increasing output from Intel’s factories, which still cannot produce enough to fulfill all its orders. “There is huge demand,” Tan said. “We are working very hard with our team to make sure we deliver, that we meet that demand but we are still short because the demand keeps increasing from the customers.”
Currently, Intel is also navigating challenges faced by the PC industry, particularly memory-chip shortages. The surging demand for server products has led memory suppliers to focus on high-speed processors for those machines, impacting the production of standard products used in phones and personal computers. Consequently, fewer mass-market devices are being manufactured, leading to higher prices.
In addition to enhancing production, Mr. Tan has restored Intel’s balance sheet through outside investments, to the extent that the company was able to repurchase part of a factory in Ireland that it had previously sold to generate cash. This move has been interpreted as a sign of future confidence by investors. Compounding the optimism, Tesla CEO Elon Musk announced on April 22 that he plans to utilize Intel technology as part of his initiative to establish an in-house chip manufacturing plant. Mr. Tan did not provide further details on this relationship.
Second-quarter earnings are projected to be about 20 US cents a share, excluding certain items, compared to a Wall Street prediction of 9 US cents. In the first quarter, which ended March 28, revenue rose 7 percent to US$13.6 billion, and profit was 29 US cents a share, excluding some items. Analysts had estimated sales of US$12.4 billion and earnings of 1 US cent, according to data compiled by Bloomberg.
Despite these gains, Intel has a considerable journey ahead to reclaim its former status in the chip industry. Its annual revenue of US$53 billion in 2025 was approximately US$25 billion below the peak revenue achieved in 2021. Wall Street projects 3 percent growth in 2026. So far, Intel has not been able to produce the type of AI accelerator that has made Nvidia the wealthiest company in the chip industry and the most valuable publicly traded company worldwide. Nvidia and others are intensifying their efforts to manufacture microprocessors necessary for orchestrating tasks in AI data centers, traditionally dominated by Intel’s Xeon lineup, which once held over 99 percent market share.
Mr. Tan stated that Intel is now a “fundamentally different company” than it was in 2025, when he took over as CEO. “A year ago, the conversation about Intel was about whether we could survive,” he remarked. “Today, it’s about how quickly we can add manufacturing capacity and scale our supply to meet the enormous demand for our products.”
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