On April 23, Intel surged 19.06% after hours, trading at $80.01/share, with trading volume of approximately $18.04 billion. The rally was triggered by Intel's Q1 earnings release, which delivered a significant beat on both revenue and margin expectations.
Intel reported Q1 fiscal revenue of $13.6 billion, up 7% year-over-year and roughly $1.4 billion above the guidance midpoint of $11.7-12.7 billion, far exceeding the consensus estimate of approximately $12.4 billion. Adjusted gross margin came in at 41%, a sharp improvement from the guided 34.5% and well above Q4's 37.9%. The company's AI-related business surged 40%, with custom chip (ASIC) annualized revenue surpassing $1 billion. Management highlighted a favorable shift in CPU/GPU deployment ratios from 1:8 toward 1:4, driven by rising AI infrastructure demand for server CPUs. The company also confirmed landmark foundry wins, including a long-term deal with Google and a strategic TeraFab partnership. Q2 guidance also came in above consensus. Despite the strong beat, Intel's margins remain well below historical peaks above 60%, and investors will continue monitoring foundry profitability and capacity ramp progress.
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