Intel Corp. (NASDAQ:INTC) shares are surging Thursday as Microsoft’s record cloud quarter validated the demand outlook for AI hardware across the semiconductor supply chain while Samsung’s warning that the global chip shortage could extend into 2028 reinforced the case for sustained pricing power across the industry.
- Intel shares are climbing with conviction. Why is INTC stock surging?
Microsoft’s Cloud Blowout Strengthens the AI Hardware Demand Outlook
The afternoon’s dominant catalyst is a Microsoft Corp. (NASDAQ:MSFT) fourth-quarter report that shattered expectations across every major line. Total revenue of $90.01 billion represented an 18% advance from the prior year and arrived more than $2 billion above what analysts had been modeling, while earnings of $4.74 per share came in well ahead of the $4.24 consensus.
Azure and other cloud services expanded 43% with total intelligent cloud revenue reaching $39.3 billion, a 32% gain, and Azure crossed $100 billion in annual revenue for the first time in the company’s history. Microsoft 365 Copilot added users at a pace that pushed paid seats beyond 30 million.
For companies operating across foundry and fabrication like Intel, a result of that magnitude from the world’s largest enterprise software vendor translates into direct confirmation that AI infrastructure spending and the chip demand it generates remains on a durable upward trajectory.
Samsung’s Multi-Year Shortage Warning Reshapes the Industry Outlook
Samsung Electronics Co. (OTC:SSNLF) delivered a second powerful signal for the semiconductor complex, recording a second-quarter operating profit of 89.5 trillion KRW that edged past the 88.13 trillion KRW consensus to set a new all-time record. Revenue came in at 171.5 trillion KRW, also a record, though it landed just beneath the 172.65 trillion KRW estimate.
The memory division was the engine behind the outperformance, generating another record quarter on the back of relentless demand for server DRAM and HBM products tied to AI infrastructure buildout, with supply constraints persisting despite the industry’s best efforts to accelerate production.
Samsung said those constraints are not expected to ease quickly and flagged 2028 as the horizon before conditions normalize, a projection that strips out the near-term oversupply fear that had been haunting the group and gives companies across the chip ecosystem a credible multi-year demand framework to operate within.
INTC Shares Are Climbing
INTC Price Action: Intel shares were up 12.10% at $91.79 at the time of publication on Thursday, according to Benzinga Pro.
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