A surge in Intel shares following a strong earnings beat has significantly boosted the value of the U.S. government’s stake, leaving it with an unrealized gain of about $26.5 billion.

Intel (INTC) stock climbed more than 22% in premarket trading Friday after the chipmaker reported first-quarter results that exceeded expectations. The rally pushed the government’s holding—acquired last year—close to $35.4 billion in value.

The stake stems from an August transaction in which $8.9 billion in CHIPS Act and Secure Enclave funding was converted into 433.3 million shares at $20.47 each, giving the government roughly 9.9% ownership. With shares trading near $81.80, the position has nearly tripled in under a year.

In addition, the government holds warrants to increase its stake by another 5% at $20 per share, which are now deep in the money.

Intel’s quarterly performance drove the stock higher. Revenue came in at $13.6 billion, up 7% year over year and ahead of the $12.4 billion consensus estimate. Adjusted earnings reached $0.29 per share, well above expectations for a loss.

Growth was led by the Data Center and AI segment, which rose 22% to $5.1 billion, reflecting strong demand tied to expanding AI infrastructure.

CEO Lip-Bu Tan said the shift toward inference and agentic AI workloads is accelerating demand for Intel’s CPUs.

For the second quarter, Intel projected revenue in the range of $13.8 billion to $14.8 billion.