Intel earnings beat expectations; AI-driven demand helps CPU turnaround. After Chen Liwu took over, INTC has risen 3x.

Intel (Intel), in a recent earnings report, projected that second-quarter revenue would reach $13.8 billion to $14.8 billion, significantly exceeding the market’s expectation of $13 billion. This indicates that the once-troubled chip giant is benefiting from the global expansion boom in artificial intelligence (AI) computing. Under the leadership of CEO Chen Liwu, the company has made notable progress in improving operational efficiency and strengthening its balance sheet, which in turn drove the stock price up 20% in after-hours trading and reached a new historical high. Intel is actively expanding its foundry production capacity and seeking external orders, and Musk has publicly stated that its internal chip manufacturing facility (Terafab) will adopt Intel’s related technology.

Intel’s earnings report is impressive, and it raises its second-quarter outlook

Intel’s first-quarter earnings report showed revenue growth of 7% to $13.6 billion. Earnings per share (EPS), excluding certain items, was $0.29, and both figures were far above analysts’ original expectations. Even more surprising to the market was its second-quarter outlook: the midpoint of the revenue forecast is $14.3 billion, reflecting the market’s continued demand for general-purpose central processing units (CPUs). However, even with improved profitability, Intel’s adjusted gross margin is currently 41%—better than expected, but still below the company’s peak period when it often held above 60%. Gross margin is a core indicator for measuring a company’s production efficiency and bargaining power. This shows that in its pursuit of advanced process technology and its efforts to regain leadership, Intel still needs to precisely manage its high production costs.

AI data center demand drives a CPU turnaround

Amid the current AI wave, market attention is often focused on graphics processing units (GPUs), but Intel’s earnings report reveals another key trend: when data centers expand their AI infrastructure, they still heavily rely on flagship server processors such as Xeon. These CPUs coordinate the computational logic across the entire data center and form the foundation for turning AI models into actual service revenue. CEO Chen Liwu said that market demand for AI system processors is exceptionally large, and the company’s current production pace is still unable to fill all orders. This reflects that enterprises are shifting from a pure hardware buildout arms race to a stage of improving overall AI computing efficiency—thereby providing support for Intel’s core business.

Chen Liwu leads Intel’s transformation; since taking over, INTC is up 3x

Recently, Intel (Intel), under CEO Chen Liwu, has been going through an in-depth corporate transformation and reorganization. Intel’s Foundry Services (IFS) business group achieved first-quarter revenue of $5.4 billion, up 16%, showing that the company’s strategy of transitioning into a wafer foundry has begun to deliver results. Although the department’s revenue currently still primarily comes from orders from within Intel, recent interest from potential customers such as Tesla CEO Elon Musk has also emerged. Musk has said publicly that its internal chip manufacturing facility (Terafab) will adopt Intel’s related technology.

In addition, Chen Liwu has successfully improved the financial structure through external investments, and even repurchased equity in an Irish factory that had been sold earlier due to fundraising—actions viewed as a sign that the company’s operations are becoming more stable. With capital expenditures expected to remain steady, Intel is trying to restore its global competitiveness in the semiconductor manufacturing field step by step by increasing the scale of factory output while ensuring financial balance.

Intel stock (INTC) surged 20% in after-hours trading yesterday, reaching $80 and setting a new historical high. Since the low of $20 when Chen Liwu took over in March of last year, it has already climbed 3 times!

This article, “Intel’s earnings guidance beats expectations; AI demand drives a CPU turnaround; INTC is up 3x after Chen Liwu took over,” was first published on Chain News ABMedia.