Intel's stock soared more than 20% on Friday, with shares up 22% as of early afternoon, following the company's strong earnings report and renewed growth driven by artificial intelligence demand [1]. If the stock closes up more than 22.8%, it would mark Intel's best trading day since 1973 [1]. The company reported revenue of $13.58 billion for the quarter, a 7.2% increase from $12.67 billion a year earlier, reversing a trend of year-over-year declines in five of the prior seven quarters [1]. Intel also issued upbeat guidance for the second quarter [1].
The rally comes after a challenging period in which Intel lost 60% of its value in 2024, leading to the ouster of former CEO Pat Gelsinger in December of that year [1]. Under new CEO Lip-Bu Tan, who took over early last year, Intel has attracted investments from the Trump administration and Nvidia, and has re-entered the AI market, which it had previously struggled to penetrate [1]. Analysts at Evercore ISI upgraded Intel shares to a buy rating, citing improvements in the company's balance sheet and strategic execution under Tan [1]. Citi analysts also upgraded the stock, anticipating increased CPU sales across the industry in the coming years [1].
Intel's data center business was a key driver of growth, with revenue jumping 22% year-over-year to $5.1 billion as AI applications fueled renewed demand for central processing units [1]. CEO Tan emphasized the importance of CPUs as the "indispensable foundation of the AI era" during the earnings call [1]. The company is also advancing its next-generation 14A manufacturing technology, with Tan stating that "multiple customers" are actively evaluating the technology and that development is progressing faster than with the previous 18A technology [1].
Despite the positive momentum, some analysts remain cautious, waiting to see promising yields from the 14A process, which is planned for 2028 or beyond [1]. Intel's stock has more than doubled this year after an 84% jump in 2025, reflecting renewed investor confidence and optimism about the company's turnaround and AI prospects [1].
CONCLUSION
Intel's strong earnings, upbeat guidance, and AI-driven growth have sparked a dramatic rally in its shares, signaling renewed investor confidence. While the company faces ongoing challenges in chip manufacturing and technology development, recent leadership changes and strategic investments have positioned Intel for a potential comeback in the AI era.