Revenue for the second quarter increased by 25 percent to $16.1 billion, compared with the Bloomberg news agency's average forecast of $14.4 billion.
Earnings per share were 42 cents, compared with the 21 cents analysts had expected on average.
For the third quarter, Intel forecasts revenue in the range of $15.8-16.8 billion, well above the expected $15.1 billion.
“AI is driving unprecedented demand for computing power, and as we continue to deliver this, Intel is well positioned,” said CEO Lip-Bu Tan in a statement.
Intel has long struggled to meet demand for semiconductors and has not been able to ride the AI wave at the same levels as rivals Nvidia and AMD, for example. But the revised forecast is a strong signal that the company has turned the tide and appears to be able to meet demand for chips from customers building data centers.
The company's sales in the data center and AI segment increased by 59 percent to $6.3 billion in the past quarter, compared with the same period last year.
Intel's stock has surged around 12 percent in after-hours trading in New York.
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