Intel makes big gains! Chipmaker shares jump 26% after blockbuster results. How the Trump administration benefits –

Intel stock prices rose sharply on Friday after the chipmaker delivered a first-quarter performance that beat market expectations. The win was not only for the chip maker, but for the entire United States as well!The stock rose 26.7% during Friday trading, posting what could be its strongest single-day gain since 1987.

The momentum continued after the closing bell, with shares rising another 20% in after-hours trading, as investors reacted to signs of an ongoing AI-driven transformation.Intel reported revenue of $13.58 billion (€11.6 billion) for the quarter, beating its forecast of $12.3 billion (€10.5 billion) and up 7.2% from a year earlier. Adjusted earnings per share were $0.29, far exceeding expectations of $0.01.The main contributor to this performance was the company’s Data Center and Artificial Intelligence (DCAI) division, which generated revenues of $5.05 billion (€4.2 billion), up 22.4% year-on-year and well above analyst estimates of $4.41 billion (€3.77 billion). The results indicate strong demand for Intel Xeon 6 processors and Gaudi 3 AI accelerators, especially among enterprise customers and cloud providers.CEO Lip Bo Tan pointed to a broader shift in the use of artificial intelligence as a key factor behind the growth.

“The next wave of AI will bring intelligence closer to the end user, moving from basic models to inference to effectiveness,” he said. “This shift significantly increases the need for Intel’s advanced CPUs, chips and packaging offerings,” he added.The company also issued an upbeat forecast for the second quarter, forecasting revenue of between $13.8 billion (11.8 billion euros) to $14.8 billion (12.6 billion euros), beating investors’ expectations of $13 billion (11.1 billion euros).

But how does Washington win?

This rise had a direct impact on the US administration’s investment in Intel. In 2025, during a period of severe financial stress for the company, Donald Trump’s administration acquired a 9.9% stake in a move aimed at stabilizing the business. The government invested $8.9 billion (7.8 billion euros) at a share price of $20.47 (18.01 euros), of which $5.7 billion (5 billion euros) came from grants previously approved but unpaid, according to Euro News.At the time, Intel was facing billions of dollars in losses and operational challenges, raising concerns about its ability to survive. As part of the intervention, the company canceled planned factory projects in Germany and Poland, redirected focus toward manufacturing in the United States, and reduced its global workforce by 25%, eliminating about 25,000 jobs.After the latest jump, Intel shares are now trading at $81.3 (€71.5), representing a nearly 300% increase since the government first took its stake. The sharp rise highlights how the company’s improved financial performance has translated into big gains for US management.