Intel Corp. (INTC) shares jumped after beating analysts' revenue and earnings estimates after market close Thursday.
For the first quarter, the chip maker reported earnings per share of $0.87 on a non-GAAP basis, compared to analysts' estimate of $0.72 and the company's guidance of $0.70. The company also saw revenue of $16.1, beating analysts' estimate of $15.07 billion and guidance of $15 billion.
"Compared to the first-quarter expectations we set in January, revenue was higher, operating margins were stronger and EPS was better," CFO Bob Swan said in a news release. "Our data-centric strategy is accelerating Intel's transformation, and we're raising our earnings and cash flow expectations for the year."
Intel's Data Center Group, which covers server CPUs and other data center products, saw revenue of $5.2 billion, up 24% year over year.
"That's the number everybody was looking at," said Bernstein Research analyst Stacy Rasgon. While DCG and other data-centric segments remain strong, Rasgon said the stock will depend on whether that momentum continues into the second half of 2018 and next year.
Intel also raised its revenue and earnings outlook for 2018, expecting revenue of $67.5 billion and earnings per share of $3.85 on a non-GAAP basis.
Intel's stock was up 5.3% to $55.84 during after-hours trading after closing at $53.05 Thursday. Since the beginning of the year, shares have risen about 15%.