Intel shares surged over 20% on Friday, driven by investor optimism surrounding the company’s renewed growth prospects in the artificial intelligence sector. As of early afternoon, the stock was up 22%, potentially marking its best single-day performance since 1973 if it surpasses the previous high of 22.8%. Under CEO Lip-Bu Tan, who took charge last year, Intel has attracted significant investments and is positioning itself to capitalize on the AI boom, a market it had previously struggled to penetrate.

This rally comes on the heels of a positive earnings report, where Intel’s revenue rose 7.2% year-over-year to $13.58 billion, defying a trend of revenue declines in five of the last seven quarters. The data center segment, which grew 22% to $5.1 billion, is a key driver of this turnaround, with analysts noting that CPUs are becoming essential for AI applications.

Market professionals should note that Intel’s strategic pivot towards AI and its upcoming 14A manufacturing technology could enhance its competitive positioning, potentially leading to sustained growth in CPU sales across the industry.

Source: cnbc.com