Intel Stock Soars 23.6% on Strong Q1 Earnings and AI-Driven Outlook

Intel Corp. shares experienced their best performance since October 1987, closing up 23.6% after the chipmaker delivered strong first-quarter 2026 results and provided an upbeat forecast driven by artificial intelligence demand.

Strong Financial Performance

Intel reported Q1 revenue of $13.58 billion, up 7% year-over-year and beating estimates of $12.42 billion. The company also forecasted Q2 revenue and adjusted earnings per share above estimates, driving the stock surge of over 20%.

AI-Driven Turnaround

The strong results suggest CEO Lip-Bu Tan is making significant progress on Intel's turnaround efforts. The company has strengthened its balance sheet and is now showing improved operations, with AI-driven CPU demand powering the upbeat forecast.

"Intel is a fundamentally different company today," said CEO Lip-Bu Tan as shares surged on the upbeat forecast.

Government Stake Value Surge

The value of the US government's stake in Intel has increased fourfold to approximately $36 billion, representing a roughly $27 billion paper gain since the investment was announced in August 2025. This stake resulted from CHIPS Act grants being converted to equity under the Trump administration.

Market Impact

Intel's rally demonstrates that the AI boom is expanding beyond Nvidia chips, with the stock up 124% year-to-date. The performance signals a recovery at the US chipmaker, with AI agents and data center demand driving renewed growth.

The results show Intel benefiting from the broader AI infrastructure buildout, as companies increase investments in AI-capable hardware and data center equipment.