SANTA CLARA, Calif. ( TheStreet) -- Investor reaction to Intel's ( INTC) best-ever quarterly results were driving up shares of other tech heavyweights like Dell ( DELL), Hewlett-Packard ( HPQ) and Microsoft ( MSFT) in early trading Wednesday. Intel's shares continued their recent momentum, gaining 88 cents, or 4.19%, to reach $21.89 shortly after market open. Dell shares rose 53 cents, or 4.02%, to reach $13.73, while H-P gained 79 cents, or 1.69%, to hit $47.56. Microsoft also got a lift from Intel's results, gaining 33 cents, or 1.31%, to reach $25.46, outpacing the modest advance in tech stocks that saw the Nasdaq rise 0.27%.
While PC upgrades helped bolster Intel's revenue, enterprise server sales proved to be the key driver in the chipmaker's blowout quarter, a fact that will reverberate across Silicon Valley. Speaking during a conference call after market close, Intel CEO Paul Otellini explained that the company's server business had a record quarter. Chip sales into IP data center servers grew a massive 170% year over year, he said. Although infinitely less sexy than netbooks, tablets and smartphones, servers represent a massive revenue opportunity for tech firms such as Intel, IBM ( IBM), H-P, and Oracle ( ORCL), which recently acquired Sun Microsystems. Recent research from IDC revealed that first-quarter server revenue grew 4.7% year-over-year to reach $10.4 billion. This represented the first quarter of year-over-year revenue growth in seven quarters, according to the tech research firm, signaling a major rebound in corporate IT spending. "We continue to believe that the server upgrade will gain momentum this year as more corporations realize the attractive ROI gained by replacing outdated hardware," explained Avi Cohen, an analyst at Avian Securities, in a note released on Wednesday. "We think this is an important point to remember since we believe increased corporate spending will lend critical support to Intel's top-line stability should consumer momentum decelerate more than expected."