After positive earnings releases from peer semiconductors like Texas Instruments, Taiwan Semiconductor, and ASML, it was Intel’s turn to further support the notion that the semiconductor industry is doing just fine amid the recent volatility. In the end, the legacy chipmaker bested expectations in both earnings per share (29 cents adjusted versus 1 cent expected) and revenue ($13.58 billion versus $12.42 billion expected).
Artificial intelligence (AI) has certainly given the semiconductor industry a boost given that the technology’s platforms require copious amounts of processing power to run. While names like Nvidia and AMD have been receiving much of the spotlight, Intel has been somewhat lagging behind. Hopefully, this recent earnings report could prove that the 57-year-old company hasn’t lost its mojo.
Intel interview with both Lip Bu Tan and CFO Dave Zinsner:
Intel CEO Lip Bu Tan:
“There is huge demand,” Lip Bu Tan said of the CPU market. "We are working very hard with our team to make sure we deliver, that we meet that demand but we are still short because the demand keeps…
— Ed Ludlow (@EdLudlow) April 23, 2026
Key Takeaways:
- Intel crushed expectations with $13.58B in revenue and $0.29 EPS, proving the legacy chipmaker is a formidable AI contender.
- Elon Musk’s confirmation of Intel’s 14A process node for Terafab validates its foundry ambitions to rival TSMC.
- Intel’s bold Q2 outlook outpaces analyst views, signaling high confidence in sustained AI infrastructure and CPU demand.
Terafabulous: Intel's Bullish Tailwinds
As mentioned, AI continues to provide the tailwinds blowing in favor of semiconductors. For intel, its data center business saw the most growth, helping to power its revenue 7.2% higher compared to the previous year.
Looking ahead, the Terafab project, a joint venture between Elon Musk and Intel, could add more bullish vibes. With Tesla, SpaceX, and xAI as strategic partners in this venture, Intel will work with these companies to help produce high-performance chips necessary in this era of AI.
“The biggest news for INTC might not have even come from their own earnings, as Elon Musk yesterday said that the Tesla plans to use Intel’s 14A manufacturing process for chips at Terafab,” said Ryan Lee, Direxion’s senior vice president of product and strategy. “While this had been speculated for a month, this confirmation gives INTC a huge win in building a contract manufacturing business to rival TSM.”
Holding Its Own Vs. Peers
Aside from Micron, which has gone gangbusters over the past 12 months with an over 600% gain, Intel is fairing well against its industry peers (as of April 22). Before announcing Q1 earnings, it was practically neck and neck with AMD while easily outpacing the likes of heavy hitters like Taiwan Semiconductor and Nvidia.
Intel is expecting Q2 revenue to fall between $13.8 billion and $14.8 billion, as well as an adjusted earnings per share estimate of 20 cents. As CNBC reported, these estimations are lofty goals when compared to analyst expectations of $13.07 billion for revenue and 9 cents for EPS.
It will be interesting to see how Intel’s stock reacts as markets delve deeper into Q2.
See more: Video: ETF of the Week: SOXL
Broad Industry Impact
Intel’s Q1 report could help set the tone for semiconductor sentiment through the rest of 2026. As mentioned, semiconductors continue to underscore the elevated demand for computing power amid AI’s infrastructure buildout. The rapid deployment of AI and its technological evolution (like agentic AI) should benefit the tech sub-sector — at least on paper — which means trading flexibility and adaptability is a must.
Traders who want to place bullish bets on Intel will want to look at the Direxion Daily INTC Bull 2X ETF (LINT). The fund is just one of the newer offerings in Direxion’s growing single-stock ETF lineup. The funds are ideal for short-term traders seeking additional exposure to a company’s stock without the use of a margin account.
From a broad sector perspective, if traders think Intel’s earnings are a harbinger of what’s to come for semiconductors, then the Direxion Daily Semiconductor Bull 3x Shares (SOXL ) is the play. If short-term pullbacks occur, then traders can profit from the weakness with the Direxion Daily Semiconductor Bear 3X Shares (SOXS ). Semiconductors can see heavy volatility so having the ability to trade both sides speaks to the flexibility of these leveraged-inverse ETFs.
“INTC’s rapid rise and massive beat today certainly will result in ripples felt across the entire world of semis,” Lee said. “SOXL and SOXS offer 3X and -3X, respectively, daily exposure to the ICE Semiconductor Index, providing traders with tools to take concentrated directional positions on the most important component of the AI trade.”
See more: Intel’s $240 Billion Rally Slams Into a Potential Earnings Wall
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