Intel issued a robust sales forecast for the current quarter, indicating that the beleaguered chipmaker is finally beginning to benefit from the massive build-out of artificial intelligence infrastructure.
The company stated on Thursday that revenue for the quarter ending in June is projected to be between $13.8 billion and $14.8 billion. This surpassed the average analyst estimate of $13 billion. Adjusted earnings per share are expected to be approximately 20 cents, compared to Wall Street's prior forecast of 9 cents.
Intel's Chief Executive Officer stated he is "all in" on increasing factory output.
Intel's stock surged nearly 20% in after-hours trading. Prior to the earnings release, the stock had already gained 81% this year, closing at $66.78.
The optimistic outlook signals that the CEO's challenging turnaround plan is gaining traction. Last year, he secured substantial investments for Intel, which helped strengthen the company's balance sheet. The results announced on Thursday indicate he is delivering on his promise to improve the company's operations.
The earnings report revealed that demand for data center chips has surged, driven by the massive expansion to support artificial intelligence, boosting demand for Intel's flagship Xeon server processors. These semiconductors are becoming a focal point for companies attempting to monetize AI software.
The CEO remarked in an interview that Intel's performance was "solid" and exceeded expectations. He anticipates sustained growth in demand for processors used in AI systems and stated the company is "highly focused" on increasing factory capacity, as it still cannot fully meet all customer orders.
The CEO added, "Demand is very strong. We are working closely with the team to ensure we can deliver and meet demand, but due to continuously growing customer needs, we remain supply-constrained."
