Intel just reminded the market how violent sentiment reversals can get.
Q1 2026 revenue came in at $13.58B, while adjusted EPS landed at $0.29, crushing the $0.01 analyst estimate. That surprise, plus stronger Q2 guidance, sent Intel shares sharply higher, with Reuters reporting a 19% after-hours jump and WSJ noting the stock was up more than 24% Friday, near $83.
What makes this even wilder is the second layer of the story.
The U.S. government’s $8.9B CHIPS Act stake, converted at $20.47 per share, is now worth around $36B, creating roughly $27B in paper gains in less than a year. That is not just a company rally. That is a full-scale re-rating of how fast the semiconductor narrative can turn when demand, policy, and AI infrastructure start moving in the same direction.
What stands out to me is this: the market is no longer reacting to Intel like a legacy name stuck in recovery mode. Right now, it is reacting to Intel like a company that may have found a real opening in the AI buildout cycle, especially in server CPUs and foundry momentum. Reuters also noted Q1 data-center and AI revenue at $5.1B, above expectations.
That does not mean the turnaround is finished. It means the market suddenly believes it is real.
Is Intel becoming one of the biggest comeback trades in tech this year?
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