Intel share price soared sharply on Friday after the chipmaker delivered a first-quarter performance that exceeded market expectations. The stock climbed 26.7% during trading, marking its strongest single-day gain since 1987. Momentum continued after the closing bell, with shares rising a further 20% in after-hours trading as investors reacted to signs of a sustained turnaround driven by artificial intelligence.
Strong Quarterly Results
Intel reported revenue of $13.58 billion for the quarter, ahead of the $12.3 billion forecast and up 7.2% from a year earlier. Adjusted earnings per share came in at $0.29, far exceeding expectations of $0.01. A key contributor to this performance was the company’s Data Centre and AI division, which delivered revenue of $5.05 billion, up 22.4% year-on-year and well above analyst estimates of $4.41 billion. The results indicate strong demand for Intel’s Xeon 6 processors and Gaudi 3 AI accelerators, particularly among enterprise clients and cloud service providers.
CEO Highlights AI Shift
Chief executive Lip-Bu Tan pointed to a broader shift in artificial intelligence usage as a major factor behind the growth. He said, "the next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic." He added, "This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings."
Upbeat Outlook
The company also issued an upbeat outlook for the second quarter, forecasting revenue in the range of $13.8 billion to $14.8 billion, surpassing investor expectations of $13 billion.
US Government Stake Soars
The rally has had a direct impact on the US administration’s investment in Intel. In 2025, during a period of severe financial strain for the company, the administration of Donald Trump acquired a 9.9% stake in a move aimed at stabilising the business. The government invested $8.9 billion at a share price of $20.47, with $5.7 billion of that amount coming from previously approved but unpaid grants. At the time, Intel was facing multi-billion dollar losses and operational challenges, prompting concerns over its viability. As part of the intervention, the company cancelled planned factory projects in Germany and Poland, redirected focus towards US-based manufacturing, and reduced its global workforce by 25%, cutting around 25,000 jobs.
Following the latest jump, Intel’s shares are now trading at $81.3, representing an increase of nearly 300% since the government first took its stake. The sharp rise highlights how the company’s improved financial performance has translated into substantial gains for the US administration.
