Intel stock jumps 28% after Q1 earnings beat — AI chip demand is fueling a turnaround for the struggling chipmaker

Intel reported stronger-than-expected first-quarter results on Friday, sending its stock up 28% in premarket trading. The company is benefiting from surging demand for chips that power AI data centers, where customers like cloud providers and enterprise companies are racing to build AI infrastructure.

AI chip orders require the kind of high-performance processors Intel makes — the processors that train large language models (AI systems that understand and generate text) and run inference (the step where AI produces answers to user queries). As more companies invest billions in AI capability, they need Intel's chips alongside competitors like NVIDIA.

For business professionals and investors, Intel's rebound matters because the company was seen as a laggard in AI. A sustained earnings beat signals Intel can compete again, which could lower chip prices for data centers over time and give enterprises more negotiating power when buying AI infrastructure.