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Intel's Comeback: A New Chip Era?
20 Jun
Summary
- Intel's revenue beat expectations for six straight quarters.
- Data center and AI segment grew 22% year over year.
- Intel's foundry business brought in $5.4 billion last quarter.
Intel has demonstrated a significant turnaround over the past year, with its stock price surging over 500%. Under CEO Lip-Bu Tan, the company has exceeded revenue expectations for six consecutive quarters. In the first quarter, revenue rose 7% year over year to $13.6 billion. The data center and AI segment saw a 22% year-over-year increase, reaching $5.1 billion, driven by demand for its Xeon server processors.
The company's foundry business generated $5.4 billion in the first quarter, contributing to its recovery. Intel's CEO noted a shift towards CPUs in AI workloads, moving from training to inference and agentic AI. Despite these positive developments, the foundry business incurred a $2.4 billion operating loss, with only $174 million coming from outside customers.
