Intel Corp (NASDAQ:INTC) stock surges 23.64% (As on April 25, 8:01:00 AM UTC-4, Source: Google Finance) after the company reported first-quarter earnings that blew past Wall Street’s expectations, as the struggling chipmaker shows signs of a revival. Intel saw the strongest growth in its data center business, where it’s starting to get traction in AI thanks to surging demand for central processing units (CPUs). Revenue in that division climbed 22% to $5.1 billion. The growing CPU demand underpinned Intel’s recent $14 billion purchase of a 49% stake in its Ireland chip fab that it had previously sold to Apollo Global Management. Intel is still losing money. The company said its net loss widened to $4.28 billion, or 73 cents per share, from $887 million, or 19 cents a share a year earlier. However, Intel delivered big on its promising turnaround, which has been spurred by investments from the U.S. government, Nvidia NVDA), and Softbank SFTBY).

Moreover, Foundry revenue at Intel rose 16% from a year go to $5.4 billion, though much of its foundry business consists of making its own chips. Intel’s Core Ultra Series 3 processor started selling in PCs in January, while its newest Xeon 6+ data center processors hit the market in March. Soon after, Google committed to using multiple generations of the Intel CPU to run AI workloads in its data centers. Meanwhile, Tesla’s CEO Elon Musk said on Wednesday the ​EV maker plans to use Intel’s next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has ‌envisioned in Austin. Intel and Alphabet Inc Class A recenlty announced a multiyear collaboration for continued deployment of Intel Xeon processors across Google’s workload-optimized instances, including the latest Intel Xeon 6 processors powering C4 and N4 instances. The collaboration also includes co-development of custom ASIC infrastructure processing units (IPUs) designed to improve utilization, reduce complexity, and scale AI workloads more efficiently.

INTC in the first quarter of FY 26 has reported the adjusted earnings per share of $0.29, beating the analysts’ estimates for the adjusted earnings per share of $0.01. The company had reported the adjusted revenue growth of 7 percent to $13.58 billion in the first quarter of FY 26, beating the analysts’ estimates for revenue of $13.42 billion.

Intel said it expects second-quarter revenue between $13.8 billion and $14.8 billion, and adjusted earnings per share of 20 cents. That’s well above analyst expectations for revenue of $13.07 billion and EPS of 9 cents.