Intel Stock Surges 22% After Strong Q1 Earnings, AI Data Center Demand Boosts Revenue

Intel’s Q1 2026 Earnings Exceed Expectations, Stock Price Jumps

Intel Corporation (Nasdaq: INTC) has long lagged behind industry leaders in the AI hardware race, where GPUs from companies like Nvidia have dominated. However, a shift in focus toward CPUs for accelerating AI tasks has positioned Intel to benefit significantly, as evidenced by its latest earnings report and a sharp rise in stock price.

Key Financial Highlights from Q1 2026

Released on April 29, 2025, Intel’s first-quarter 2026 financial results for the period ending March 28, 2026 surpassed analyst expectations. The company reported:

• Total revenue: $13.6 billion (up 7% year-over-year)
• Adjusted earnings per share (EPS): 29 cents
• Client Computing Group (CCG) revenue: $7.7 billion (up 1% year-over-year)
• Data Center and AI (DCAI) revenue: $5.1 billion (up 22% year-over-year)

Analysts had projected revenue of $12.4 billion and an EPS of just 1 cent, according to CNBC and LSEG estimates. Intel’s actual results far exceeded these forecasts.

AI Data Center Boom Drives DCAI Revenue Growth

The standout performer in Intel’s Q1 was its Data Center and AI (DCAI) division, which saw revenue surge 22% to $5.1 billion. While the Client Computing Group (CCG)—responsible for consumer and workstation chips—remained Intel’s largest revenue source at $7.7 billion, its growth was modest at just 1%.

Intel’s DCAI division supplies high-performance CPUs, including its Xeon processors, which are critical for AI data centers. These facilities require powerful CPUs alongside GPUs to process AI workloads efficiently. The sustained demand for AI-optimized servers shows no signs of slowing, benefiting Intel directly.

"The CPU is reinserting itself as the indispensable foundation of the AI era. This isn’t just our wishful thinking, it’s what we hear from our customers."

Strong Q2 Forecast Further Boosts Investor Confidence

Intel’s positive momentum continued with a bullish outlook for the second quarter. The company projected:

• Q2 revenue: Between $13.8 billion and $14.8 billion
• Adjusted EPS: 20 cents

These figures significantly outpace analyst expectations of $13.07 billion in revenue and a 9-cent EPS, as reported by CNBC.

INTC Stock Price Soars Over 22% in Early Trading

In response to the earnings report and forecast, Intel’s stock price surged. As of the time of publication, INTC shares were trading at $81.74, marking a more than 22% increase in early morning trading.