Intel Q1 Stock Soars 25%, Nasdaq Record, Musk Terafab

Intel shares rocketed roughly 25 percent in Friday premarket trading after the chipmaker posted its sixth straight quarterly beat and confirmed a partnership with Elon Musk's Terafab chip complex in Austin, Texas. The rally drove the Nasdaq Composite to a fresh intraday record, up about 1.5 percent, as semiconductor momentum extended into an 18th consecutive session.

A Blowout Print

According to Intel's investor relations release and coverage from CNBC, Yahoo Finance and RTTNews, first-quarter revenue landed at 13.58 billion dollars against a 12.42 billion dollar consensus, up 7 percent year over year. Adjusted earnings per share of 0.29 dollars crushed the 0.01 dollar consensus. Data Center revenue rose 22 percent year over year to 5.1 billion dollars, and Client Computing revenue came in at 7.7 billion dollars versus a 7.1 billion dollar expectation.

AI-driven businesses now account for 60 percent of revenue, up 40 percent year over year, the company said. Second-quarter guidance of 13.8 to 14.8 billion dollars in revenue and 0.20 dollars in adjusted EPS sat well above Street estimates of 13.07 billion dollars and 0.09 dollars respectively.

The Terafab Deal With Musk

Intel confirmed it will join Musk's Terafab chip complex in Austin, where it will "design, fabricate, and package ultra-high-performance chips at scale" for SpaceX, xAI and Tesla, per Yahoo Finance and The Motley Fool. Tesla plans to use Intel's 14A process. Google separately committed to multiple generations of Intel CPUs for its AI data center workloads.

A Comeback Narrative

The results extend the turnaround overseen by CEO Lip-Bu Tan and push Intel stock up around 100 percent year to date, according to 24/7 Wall St. The Terafab tie-up puts Intel back into contention as an advanced foundry, a role dominated in recent years by TSMC.

Texas Instruments, reporting earlier, hit a 25-year high as the broader chip tape rallied alongside Intel.