Quick SummaryIntel shares skyrocketed approximately 24% on Friday following a massive Q1 earnings surpriseAdjusted earnings per share reached $0.29 versus Wall Street’s modest $0.01 projection; total revenue hit $13.6B compared to $12.36B consensusThe Data Center and AI division generated $5.1B in revenue, surpassing analyst expectations of $4.41BForward guidance for Q2 revenue of $13.8B–$14.8B significantly exceeded the $13.03B Street estimateCitigroup elevated Intel to Strong-Buy status; numerous Wall Street firms increased their price targets post-earningsIntel delivered results that caught Wall Street completely off guard. The semiconductor giant reported adjusted earnings of $0.29 per share, demolishing the meager $0.01 consensus projection — representing a stunning $0.28 beat. Total revenue reached $13.6 billion, substantially exceeding analyst forecasts of $12.36 billion.Intel Corporation, INTCThis marks the sixth straight quarter where Intel has exceeded its own revenue projections, a streak CEO Lip-Bu Tan attributed to a “deliberate reset” in the company’s operational approach.Shares finished Friday’s session at $82.54, representing a remarkable 23.6% single-day gain. The closing price positions the stock close to its 52-week peak of $85.22, a dramatic recovery from its yearly low of $18.97.Intel’s Data Center and AI division emerged as the clear winner. This segment generated $5.1 billion in revenue, significantly outpacing the $4.41 billion Wall Street projection. Company leadership characterized CPU demand for AI applications as “unprecedented.”The AI Agent CPU ThesisIntel’s positioning is clear and focused. While graphics processors dominate AI model training and execution, the actual tasks performed by AI agents — web navigation, data retrieval, workflow execution — depend heavily on CPUs. This represents Intel’s core strength.“The next wave of AI will bring intelligence closer to the end user,” Tan explained, “moving from foundational models to inference to agentic.”The Client Computing division, encompassing PC processors, also exceeded expectations. Revenue reached $7.7 billion versus the $7.1 billion forecast — despite IDC projecting an 11.3% contraction in the global PC market for 2026.Outlook for Q2 landed between $13.8 billion and $14.8 billion. Analysts had previously estimated $13.03 billion. Intel also projected Q2 earnings per share at $0.20, surpassing the current full-year analyst consensus of $0.08.Major Partnership AnnouncementsIntel secured multiple significant contracts during Q1. The company will collaborate with Elon Musk on the upcoming Terafab project, manufacturing chips for SpaceX, xAI, and Tesla. Tesla’s selection of Intel’s 14A manufacturing process represents a significant validation of its foundry operations.Additionally, Intel announced an extended partnership with Google, with Xeon processors designated to support AI and inference applications across Google Cloud infrastructure.In a strategic transaction, Intel announced plans to reacquire a 49% ownership stake in a manufacturing plant previously sold to Apollo in 2024 for $11.2 billion — now repurchasing it for $14.2 billion.Regarding analyst coverage, Citigroup elevated Intel from Hold to Strong-Buy after reviewing the results. Royal Bank of Canada increased its price target from $48 to $80. BNP Paribas shifted from Underperform to Buy. The overall consensus rating remains Hold, with an average target of $72.12 — which now sits below the current trading price.Major institutional investors had been accumulating shares prior to the report. Norges Bank initiated a position valued at approximately $2.2 billion during Q4. Vanguard increased its stake by 3.5%. Institutional ownership currently stands at roughly 64.5% of outstanding shares.Despite supply constraints in its Data Center business — where demand continues to exceed production capacity — the company confirmed it will progressively increase output each quarter.The post Intel (INTC) Stock Explodes 24% Higher in Best Single-Day Rally Since 2020 appeared first on Blockonomi.