Intel stock surged Friday to a record high after a strong first-quarter earnings report, driven by rising AI demand.
The chipmaker beat expectations on both revenue and profit, while also issuing a stronger-than-expected forecast for the second quarter.
Shares jumped 23% in a single day, reaching as high as $85.22 before closing at $82.57. The rally pushed Intel’s year-to-date gain to around 120%, marking a major turnaround for the company.
Investor optimism was fueled by earnings that exceeded Wall Street estimates. Revenue came in at $13.58 billion, above the expected $12.42 billion, while earnings per share reached $0.29 compared to forecasts of just $0.01.
However, the biggest driver was forward guidance. Intel projected second-quarter revenue between $13.8 billion and $14.8 billion, significantly ahead of the $13 billion analysts expected.
A key highlight was growth in Intel’s data center business, where revenue rose 22% to over $5 billion. Its foundry segment also expanded, increasing 16% to $5.4 billion.
CEO Lip-Bu Tan emphasized that the next phase of AI—shifting from large foundational models to inference and agent-based systems—is increasing demand for Intel’s CPUs and advanced chip packaging.
After falling behind competitors like Nvidia in the AI race, Intel’s recent performance suggests it may be regaining momentum.
One notable development is that Nvidia selected Intel’s Xeon 6 processors to power its DGX Rubin NVL8 AI systems, signaling deeper integration into next-generation AI infrastructure.
Some analysts believe years of investment—including support from policies like the CHIPS Act—are beginning to pay off, positioning Intel for a stronger role in the evolving AI-driven chip market.