Intel shares gain over 5%, extend record April rally as AI-driven demand fuels momentum

Intel continued to ride the bull wave as its shares jumped another 5.45% to a fresh record high of $100.45 apiece on Friday, 1 May, extending its historic monthly rally as the company’s outlook brightened after it delivered blockbuster numbers in the March quarter and issued upbeat guidance.

The shares finished last month with a massive surge of 114%, marking their best monthly rally since joining the Nasdaq nearly 55 years ago. The rally has not only yielded handsome returns to investors but has also reignited the AI trade, which sent the Nasdaq to multiple record peaks.

The uninterrupted run pushed Intel’s market value above $490 billion. Intel is experiencing a significant turnaround in 2026, benefiting from AI spending through a resurgence in demand for its central processing units (CPUs) in data centres, which are increasingly being used to handle AI inference tasks.

The four cloud-computing giants, often referred to as hyperscalers, have indicated that spending on artificial intelligence is unlikely to slow anytime soon, with their combined outlays now set to surpass $700 billion this year, signalling that demand for chips is only expected to get stronger in the coming quarters.

AI-related and other Big Tech stocks were under pressure earlier this year as investors grew uneasy about heavy spending without near-term visibility on faster revenue growth, stronger margins and higher cash flows.

Upbeat performance in Q1

Last week, the company reported first-quarter revenue of $13.58 billion, up 7.2% year-on-year, while adjusted earnings per share came in at $0.29, beating analysts’ estimates. Gross margin stood at 41% on an adjusted basis.

Buoyed by the strong performance, Intel issued a robust outlook for the second quarter, projecting revenue in the range of $13.8 billion to $14.8 billion, coming higher than analysts' estimates.

The outlook has boosted investor confidence in sustained demand for central processing units (CPUs), which are critical for powering AI-driven applications.

The upbeat guidance also signals progress in Chief Executive Officer Lip-Bu Tan’s turnaround strategy, aimed at positioning Intel to capitalise on the expanding artificial intelligence ecosystem.

As AI systems grow more complex, customers are increasingly using Intel’s Xeon server CPUs alongside GPU accelerators, with demand for server processors required to manage these workloads accelerating rapidly.

Earlier this month, Intel partnered with SpaceX and Tesla on the recently launched Terafab project to build semiconductor capacity. The initiative aims to deliver massive computing power, targeting around 1 terawatt of annual capacity.

Shares recover 400%

After struggling for over 16 months and closing most passing months lower through June 2025, the shares regained momentum in August with a sharp 23% surge, with the rally only strengthening further in the following months.

The stock closed five out of the subsequent eight months in the green, delivering a cumulative surge of 377%.

Taking today’s high into account, the shares have recovered a massive 400% from June lows, indicating growing investor confidence in the company’s long-term growth prospects. Investors who bought $1,000 worth of Intel’s shares 5 years ago would now be looking at an investment worth $1,745.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.