Intel forecasts quarterly revenue above estimates, underscoring booming demand for server chips
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- Intel forecasts Q2 revenue $13.8‑$14.8 billion, beating the $13.07 billion estimate; shares rise 15% and market cap gains $49 billion.
- Tesla signs on as Intel’s first major customer for the 14A process at Elon Musk’s Terafab AI chip complex, linking Intel chips to the robotaxi fleet.
- Google expands its AI CPU partnership with Intel, integrating Intel’s AI‑optimized processors into Google’s data‑centre workloads.
- US government signs investment deals with Intel alongside SoftBank and Nvidia, bolstering the company’s AI‑chip rollout.
- CPU renaissance: Intel raises chip prices to fund higher production costs as AI workloads shift from GPUs to CPUs for autonomous agents.
Why it matters: Intel gains $49 billion market value and a pipeline of AI chip orders from Tesla and Google, while rivals risk losing share as AI compute demand spikes amid U.S. war and oil‑shipment constraints.
