Getting rich at our expense? Intel reports $13 billion in quarterly revenue

Intel has reported its financial results for the past quarter — revenue reached $13.6 billion, up 7% year-over-year and about $1 billion above analysts’ expectations. On the back of this, as well as an optimistic outlook, the company’s shares jumped by around 20%.

The lion’s share of Intel’s revenue still comes from the Client Computing Group (CCG), which is responsible for PC products. Its revenue for the first quarter totaled $7.7 billion. However, the main driver of rapid growth was the Data Center and AI (DCAI) division, whose revenue increased by 22% year-over-year to $5.1 billion. Analysts directly link this to the AI boom and rising demand for server chips used in data centers.

The financial performance of Intel Foundry, the company’s contract semiconductor manufacturing division, also improved, reaching $5.4 billion. Despite a 20% increase, it remains heavily unprofitable, with operating losses totaling $2.4 billion.

A key development that boosted investor confidence was the signing of an agreement with Elon Musk to place orders using Intel’s latest 14A process node for the future Terafab chip complex in Texas.

At the same time, the company remains unprofitable. Intel reported a net loss of $3.7 billion, significantly higher than last year due to ongoing business restructuring. Nevertheless, Intel expects further growth next quarter, forecasting revenue in the range of $13.8–14.8 billion. Amid rising interest in AI infrastructure and a gradual recovery of the PC market, investors are clearly betting on continued growth.

Previously, Tesla and SpaceX planned to build Terafab facilities in Austin, Texas. According to Musk, those fabs will produce chips for Tesla cars, Optimus robots, as well as equipment for SpaceX satellites and space data centers. He didn’t give any specific construction timelines. Intel hasn’t yet disclosed details about the process node, packaging methods, or production model within Terafab. Still, the mere fact that Intel Foundry — which is actively pushing its 14A process — is involved makes the project feel more real and puts it among the notable AI chip initiatives to watch this year. Intel will focus on rethinking silicon manufacturing processes. The company plans to leverage its own expertise in chip design, fabrication, and final assembly to help reach Terafab’s goal — delivering up to 1 TW of computing power every year. Those kinds of volumes are targeted at future AI and robotics workloads.

Do you think Intel can become a real competitor in the AI chip market?