Intel Shares experienced their steepest rise since 1987

Intel gave the recovery signal it had been looking for for a long time, this time with a very strong reaction in the stock market. The company’s shares rose 24 percent on strong first-quarter results and expectations that AI-driven demand was starting to reflect on the CPU side. This performance was recorded as the strongest daily rise for Intel shares since 1987. Summary in 10 Seconds Intel shares rose 24 percent in anticipation of strong first quarter results and artificial intelligence-driven CPU demand, showing its best daily performance since 1987.

The company’s first-quarter revenue increased 7.2 percent year-on-year to $13.58 billion; Data center revenues increased by 22 percent, reaching 5.1 billion dollars. Although recovery signals are getting stronger for Intel, the real test will be to convince large customers in its Foundry business and show successful results in 14A production technology. While the stock closed the day at $ 82.57, the company’s value increase reached 124 percent since the beginning of the year.

Considering that Intel will rise by 84 percent in 2025, it seems that there has been a significant change in investors’ view of the company. The expected break for Intel may have come. Intel’s first quarter revenue increased by 7.2 percent on an annual basis, reaching 13.58 billion dollars. In the same period a year ago, the company reported revenue of $12.67 billion. More importantly, Intel had experienced year-over-year revenue declines in five of the previous seven quarters.

Therefore, the latest picture is important not only for exceeding expectations but also for the company to return to its growth path. The company’s positive expectations for the second quarter also strengthened the market’s reaction. For a while now, Intel has been seen only as a “transformational” company. The latest balance sheet showed that this transformation may begin to be reflected in the figures. Artificial intelligence is not just a GPU story.

In recent years, when artificial intelligence is mentioned, Nvidia has been talked about the most on the chip side. Intel, on the other hand, remained in the background in this race for a long time. However, the latest results reveal that the demand for CPU in artificial intelligence infrastructure is also strengthening again. Intel’s data center business stands out at this point. The company’s Data Center division grew by 22 percent annually and generated $5.1 billion in revenue.

CEO Lip-Bu Tan also described CPUs as “the indispensable foundation of the artificial intelligence age” in the investor meeting. This statement is critical for Intel. Because the company’s strongest trump card is still its large corporate customer base and experience in server processors. AI infrastructure is not just about GPU clusters; CPUs still play a central role in data processing, system management and general-purpose processing power.

Wall Street gives Intel a chance again. Intel’s latest rise should not be read as just a single balance sheet move. The company lost approximately 60 percent of its value in 2024, and this process continued until the end of the Pat Gelsinger era. After Lip-Bu Tan took over as CEO, Intel’s story began to take shape again. In the new period, Intel is trying to both recover its balance sheet and become more visible in the age of artificial intelligence.

Support from the US government, Nvidia investment and new plans on the production side made investors take a fresh look at the company. Highlights are as follows: Intel shares rose 24 percent on Friday. This was the company’s strongest daily performance since 1987. First-quarter revenue beat expectations at $13.58 billion. Data center revenue increased 22 percent year over year to $5.1 billion. The company also shared positive revenue expectations for the second quarter.

Real Question: Can Intel Foundry really grow? The most difficult topic in Intel’s recovery story is still the production side. The company does not want to be content with being a giant that only designs its own processors; It also aims to become a major foundry player that produces chips for other companies. The problem here is this: This is a market that TSMC has dominated for years, requiring high investment and perfect production efficiency.

Intel’s 14A production technology is therefore closely monitored. Although company management says that multiple customers are actively evaluating this technology, what investors want to see will be concrete customer gains and high production efficiency. In order for Intel to truly get a long-term share of the artificial intelligence wave, it is not enough to just increase CPU sales. The company also needs to prove that it is a reliable and competitive alternative on the production side.

Can Intel return to its former strength? The sharp rise in Intel’s shares shows that the market is optimistic about the company again. However, this rise also means that expectations are growing quite rapidly. The company still has a tough road ahead. In the short term, data center revenues, CPU demand and positive second-quarter expectations provide strong support for Intel. In the long term, the success of Intel Foundry, the performance of 14A production technology and whether the company can convince large customers will determine the outcome.

This balance sheet may be a turning point for Intel. However, the real test will be whether this recovery is sustainable for several quarters. Editor’s note Intel’s latest balance sheet and the sharp rise in shares have brought the company’s long-awaited recovery story back to the agenda. However, this chart should not be read with just one-day stock market enthusiasm. Whether Intel will truly achieve a permanent transformation; data center growth, CPU demand in artificial intelligence infrastructure and customer gains, especially on the Foundry side.

Do you think Intel can return to its former power in the artificial intelligence era, or is this rise a temporary market reaction? You can share your opinions in the comments.