Intel's latest quarterly report stunned investors with $16.1 billion in revenue, far exceeding the expected $14.4 billion. Earnings per share doubled Wall Street’s forecast, reaching $0.42 instead of $0.21. This 25.2% year-over-year revenue growth represents the fastest boost the company has experienced in over 15 years.
Driving much of this jump was the Client segment, generating $8.9 billion, roughly $900 million above consensus, thanks to higher average selling prices. The Datacenter unit also performed exceptionally well, pulling in $6.3 billion and beating the $5.5 billion estimate as demand notably outpaced supply. Gross margins came in strong at 41.8%, higher than the anticipated 39.2%.
The surge in demand has pushed several analysts to revise their price targets upwards. Bernstein lifted its target to $110 from $100, while other firms like Truist and DA Davidson also raised outlooks. Baird offered the most optimistic forecast of $125, citing tight supply and potential data center revenue growth. Despite the enthusiasm, some like TD Cowen flagged possible margin pressures ahead, and Stifel trimmed targets slightly due to valuation concerns. average analyst expectations now hover around $107.67.
Institutional investors are also showing increased interest. Van Diest Capital opened a new position in Q1 with over 6,500 shares valued near $290,000. Institutional ownership stands at 64.53%, with smaller firms adding positions recently. Meanwhile, insider selling occurred in early May when EVP April Miller Boise sold roughly 40,000 shares at an average price close to $99.53, lowering her stake by nearly 28%.
Intel’s stock has risen 346% over the past year, currently trading near $89.57 but off its recent highs. The 12-month trading range spans from a low of $18.97 to a peak above $142. The company's forecast for Q3 projects an EPS of $0.38, aligning with a full-year consensus around $0.65.
Such solid results highlight a remarkable recovery trajectory for Intel amid chip shortages and rising demand for data center capacity. Investors eyeing chipmakers might watch closely as supply constraints and market appetite evolve.
