Intel Beats Earnings by $1.7B But Dumps 11% on Macro Fears

Intel just crushed revenue forecasts by $1.7 billion and delivered its strongest growth in over fifteen years. The company reported revenue of $16.1 billion, which beat expectations of $14.42 billion, driven by a 59 percent jump in its data center and artificial intelligence unit. Despite these strong numbers, the stock dropped 11 percent as executives promised heavy spending on factory equipment and materials.

Competitor AMD also took a hit, falling 5.5 percent despite securing a major chip supply deal. When both major chipmakers drop at the same time, money is usually leaving the sector entirely. The broader semiconductor fund is currently trading well below its June highs, weighed down by rising Treasury yields, oil prices, and global economic concerns.

Adding some humor to the market drama, television personality Jim Cramer turned bullish on Intel right after the report. Traders often joke about an inverse effect, though Intel is simply too large for one commentary to move the needle against heavy macro selling. Watch the market open this week to see if chip stocks find a bottom or face more pressure.