On Wednesday, Intel Corporation (NASDAQ: INTC) emerged as the top-performing stock in the Dow Jones Industrial Average. This comes after the company announced that its current quarter revenue is expected to surpass expectations.
The chipmaker’s Chief Financial Officer, David Zinsner revealed that Intel sales for the three months ending in July are projected to reach between $12 billion and $12.5 billion. The statement is made during a recently held TD Cowen conference. This forecast represents an upward revision from the previous estimate of $11.5 billion to $12.5 billion.
Zinsner further highlighted Intel’s potential to capitalize on the rising demand for artificial intelligence (AI). He explained that the company’s foundry services have the capability to manufacture wafers for customers involved in AI product development.
Intel’s CEO, Pat Gelsinger, emphasized that AI development is currently centered on large language models in the cloud. However, he believes that the dominant AI workload will shift to inference. This transition will extend to the edge and client applications, which aligns with Intel’s strengths and offers growth opportunities.
This positive news comes after Intel’s shares hit a nine-year low in February. However, the stock has since rebounded and currently shows a year-to-date increase of approximately 20%.
On May 31st, INTC stock surged 4.83%, closing at $31.44. The stock opened slightly higher than the previous day’s close, trading between $29.67 and $32.29 throughout the day. The trading volume reached 136,000,648 (136 million), surpassing the average volume of 43.72 million over the past three months. Currently, INTC’s market capitalization stands at $123.90 billion.
