Intel to report first quarter earnings as CPUs become key to AI growth
Intel Corporation (INTC) is set to announce its first quarter earnings after the market closes on Thursday. The company’s performance is garnering significant attention as artificial intelligence (AI) continues to drive a surge in demand for its central processing units (CPUs).
The Rise of AI and Intel’s Position
Intel has faced challenges in the rapidly evolving AI landscape, particularly due to its initial inability to produce chips that could effectively run AI models. This gap allowed competitors, notably Nvidia (NVDA), to capitalize on the AI boom, transforming Nvidia into a nearly $5 trillion company. However, Intel is now poised to capture its share of the AI market.
As AI technologies, including semi- or fully autonomous AI agents, become increasingly prevalent, the role of CPUs is becoming more critical. These AI agents perform various tasks such as browsing websites and searching for data in spreadsheets, which rely heavily on the processing power of CPUs. This shift is making Intel’s products more relevant than ever.
Expected Earnings for Q1
According to Bloomberg analyst consensus data, Intel is projected to report earnings per share (EPS) of $0.01 on revenues of $12.36 billion for the first quarter of 2026. This represents a decline from the same quarter last year, where the company reported an EPS of $0.13 and revenues of $12.67 billion.
Data Center and AI Business Growth
Intel’s Data Center and AI segment is anticipated to generate approximately $4.41 billion in revenue, reflecting a year-over-year increase of 6.8%. This growth is particularly notable given the broader challenges the company faces, including supply constraints on its chips due to heightened demand.
Challenges in the PC Market
Despite the positive outlook for its AI and data center business, Intel is contending with significant challenges in the personal computer (PC) market. The International Data Corporation (IDC) predicts that the global PC market will decline by 11.3% in 2026. However, revenue is expected to grow by 1.6% due to higher average selling prices.
Client Computing Revenue
Intel expects its Client Computing revenue, which includes sales of chips for PCs, to reach approximately $7.1 billion in the quarter, which is a decrease of roughly 7% year over year. This decline is attributed to the ongoing memory chip shortage that is suppressing PC sales.
Strategic Partnerships and Developments
In a bid to bolster its position in the market, Intel has secured several strategic partnerships in the first quarter. Notably, the company announced a collaboration with Elon Musk to develop the Terafab facility, which will produce chips for SpaceX, xAI, and Tesla (TSLA).
Additionally, Intel has entered into a multiyear agreement with Google to utilize its Xeon CPUs for AI, inference, and other workloads within Google Cloud. These partnerships are expected to enhance Intel’s capabilities and market presence in the AI sector.
Stock Performance and Investor Sentiment
Intel’s stock has seen a remarkable increase of 77% year-to-date, reflecting investor confidence in the company’s turnaround efforts. The strategic moves in AI and partnerships with key industry players have contributed to this positive sentiment.
Future Outlook
Looking ahead, Intel is optimistic about its growth trajectory. The company anticipates improvements in chip supply constraints following the first quarter, which could positively impact its overall performance. As AI continues to evolve, Intel’s focus on CPUs may provide a competitive edge in an increasingly AI-driven market.
Conclusion
Intel’s upcoming earnings report is crucial for investors and industry observers alike, as it will shed light on the company’s performance amidst the growing demand for AI technologies. With strategic partnerships and a focus on enhancing its CPU capabilities, Intel aims to reclaim its position as a leader in the semiconductor industry.
Note: This article is based on information available as of April 22, 2026, and is subject to change as new data becomes available.
