Intel Corp. stock surged more than 4% Thursday as the market awaited the chipmaker’s first-quarter financial results. Investors are primarily focused on Intel’s strategy to fix supply-chain bottlenecks that have hindered its capacity to scale production for surging AI-related enterprise demand.
Wall Street anticipates adjusted earnings of 1 cent per share—a 92% plunge year-over-year—alongside a fall in revenue to $12.4 billion. Gross margins are expected to contract to under 35%, down from 39% in Q1 2025. This follows a two-year trend where the company repeatedly fell short of revenue projections.
By 12:29 p.m. EDT, shares rose 4.17% to $68. The stock has rallied roughly 80% this year, buoyed by major partnerships and a tech sector boost linked to hopes for peace in Iran. Intel ranks among the S&P 500’s top 20 performers, climbing 58% since late March.
This recovery follows an $8.9 billion U.S. government investment last year. Intel subsequently spent $14 billion to reclaim a 50% stake in an Irish facility from Apollo Global Management. Recently, Intel expanded its AI CPU alliance with Google and secured a spot in Elon Musk’s Terafab AI project. Musk confirmed Terafab will utilize Intel’s 14A process, making it the debut major client for the technology.
Analyst Outlook
- HSBC: Upgraded to Buy from Hold; price target raised to $95 from $50.
- BNP Paribas Exane: Upgraded to Neutral from Underperform; $60 price target.
- RBC Capital: Reaffirmed Sector Perform; $48 price target.
During the Q1 earnings release, stakeholders will prioritize 18A process yields—the ratio of functional chips per wafer—as a key metric for future manufacturing success.
About The Author
