Intel’s manufacturing campus in Ocotillo, Ariz. , where a federally subsidized expansion is underway. Credit.
Loren Elliott for The New York Times Reporting from San Francisco Intel posted blowout financial results on Thursday, a sign that the long-suffering chip maker is finally reaping substantial benefits from the artificial intelligence boom. Revenue in the first quarter rose 7 percent to $13.
6 billion, the Silicon Valley company said, more than $1 billion higher than Wall Street expected. Intel’s projection for sales in the current quarter also beat prior estimates by a wide margin.
Intel’s stock, already up more than 80 percent this year on early signs of a turnaround, jumped nearly 20 percent after the announcement to more than $79 a share.
“These results make Intel’s turnaround look less like a hope-fueled blip and more like a steadier longer-term trajectory,” said Jacob Bourne, an analyst at eMarketer, in remarks issued after the announcement. The company posted a loss of $3.
7 million, compared with a loss of $800,000 a year earlier, reflecting heavy investments to ramp up its manufacturing. The rapid rise in Intel’s share price has substantially multiplied the value of an investment that the Trump administration made in the company last summer.
In August, Lip-Bu Tan, a venture capitalist who became Intel’s chief executive last year, negotiated a deal under which the government acquired about 10 percent of Intel’s shares for $8. 9 billion. That stake is now worth nearly $35 billion. We are having trouble retrieving the article content.
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