Intel (INTC +23.33%) stock closed out Thursday's trading solidly in the green despite bearish momentum for the broader market. The company's share price ended the day up 2.3% and had been up as much 4.6% earlier in trading. Meanwhile, the S&P 500 closed out the day down 0.5%, and the Nasdaq Composite was down 0.9%.
Even though the broader market was hit with bearish pressures today connected to valuation concerns in the tech sector, Intel managed to post solid gains thanks to news that Tesla could be using one of the company's next-generation chip fabrication processes.
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Intel rises on Tesla news
Tesla published its first-quarter results and hosted an investor conference call after the market closed yesterday, and comments from CEO Elon Musk suggested that his company is poised to utilize Intel's chip fabrication technologies. Based on Musk's comments, Tesla will be the first major third-party customer for Intel's 14A chip-manufacturing process. Tesla expects to spend roughly $3 billion with Intel -- a development that bodes well for the semiconductor player.
NASDAQ: INTC
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Intel's Q1 results look promising
Intel also published its first-quarter results after the market closed today and posted strong results. Intel recorded non-GAAP (adjusted) earnings per share of $0.29 on sales of $13.58 billion in the period in the first quarter. Meanwhile, the average analyst estimate had called for adjusted per-share earnings of $0.28 on sales of $12.43 billion. Intel's revenue grew 6.9% year over year and absolutely crushed the average analyst estimate. With that big sales beat and news of the Tesla partnership, the company's future is looking up.
