Intel Revenue Jumps 7% to $13.6B on AI Demand, Beats Estimates

April 23, 2026: Intel reported first-quarter revenue of $13.6 billion, marking a 7% year-on-year increase and exceeding Wall Street expectations by more than $1 billion, as rising artificial intelligence demand boosted its data centre and manufacturing businesses, signalling momentum in the company’s ongoing turnaround, according to The New York Times.

The semiconductor company posted revenue of $13.6 billion for the quarter, up 7% compared with the same period last year. The result significantly outpaced analyst estimates, underscoring stronger-than-expected demand tied to artificial intelligence workloads.

Despite the revenue growth, Intel reported a net loss of $3.7 million, slightly wider than the $800,000 loss recorded a year earlier. The losses reflect continued heavy investments in expanding manufacturing capacity and advancing production technologies.

Intel also issued a sales outlook for the current quarter that exceeded prior market expectations, reinforcing confidence in sustained demand growth.

Stock Surge and Valuation Impact

Shares of Intel rose sharply following the earnings announcement, climbing nearly 20% to above $79. The stock has already gained more than 80% since the start of the year, driven by early signs of operational recovery and stronger positioning in the AI market.

The rally has significantly increased the value of a U.S. government investment made in August 2025, when approximately 10% of Intel’s shares were acquired for $8.9 billion. That stake is now valued at nearly $35 billion, reflecting the sharp appreciation in the company’s market capitalisation.

Intel’s data centre division was a key contributor to growth, with revenue rising 22% year over year to $5.1 billion. The increase highlights the expanding demand for chips used in artificial intelligence applications, particularly in inferencing workloads, which involve processing data after AI models are trained.

The company has historically lagged competitors in high-performance AI chips but is gaining traction in this segment as demand shifts toward broader deployment of AI technologies. Management indicated that demand continues to exceed supply, though production capacity is improving.

Executives said meeting customer demand remains a top priority as the company scales up output to address ongoing shortages.

Foundry Business Shows Progress

Intel’s foundry segment, which manufactures chips for external clients, generated $5.4 billion in revenue, up 16% from a year earlier. The growth suggests early progress in a business that has faced challenges in achieving profitability and competing with established players.

Interest in Intel’s manufacturing capabilities is increasing as competitors face capacity constraints. Recent developments include commitments from major technology firms to use Intel’s advanced production processes for future chip requirements.

The foundry expansion is a central part of Intel’s long-term strategy to diversify revenue streams and strengthen its role in the global semiconductor supply chain.

Intel’s largest segment, its personal computer chip business, reported modest growth of 1%, with revenue reaching $7.7 billion. The segment continues to face headwinds from rising memory chip costs and softer demand in the broader PC market.

While the PC business remains a significant contributor to overall revenue, its slower growth highlights the company’s increasing reliance on higher-growth segments, such as data centres and foundry services.

Investment and Turnaround Context

Intel has been undergoing a multiyear transformation aimed at restoring competitiveness in advanced chip manufacturing and capturing opportunities in artificial intelligence. The company has increased capital spending to upgrade facilities and expand production capacity, including federally supported projects in the United States.

The recent earnings performance suggests that these investments are beginning to yield results, particularly as AI-driven demand accelerates across industries.

Analysts noted that the latest results indicate a more stable trajectory for Intel’s recovery, with improving fundamentals across key business segments.

Intel’s latest quarterly performance reflects strengthening demand for AI-related computing and progress in its manufacturing strategy. While profitability remains under pressure due to ongoing investments, revenue growth and market response indicate growing confidence in the company’s turnaround efforts.

The company continues to focus on scaling production, meeting customer demand, and expanding its role in the evolving AI ecosystem.