Investing.com -- Intel Corp on Thursday reported a 7% jump and beat Wall Street estimates for its first-quarter revenue helped by rapid growth in its data center and artificial intelligence business.

Shares rallied nearly 17% in after-market hours on Thursday.

Intel’s first-quarter revenue was $13.6 billion, compared to $12.7 billion it reported in the year-ago quarter. The revenue also topped analysts’ estimate of $12.41 billion.

“We delivered robust Q1 results, reflecting the growing and essential role of the CPU in the AI era and unprecedented demand for silicon, as well as our disciplined execution to expand available supply,” said David Zinsner, Intel CFO.

Earlier in the day, Tesla’s CEO Elon Musk said on Wednesday the ​EV maker plans to use Intel’s (INTC.O), opens new tab next-generation 14A manufacturing process to make chips at its Terafab project, an advanced AI chip complex Musk has ‌envisioned in Austin.

The contract would mark Intel’s first major customer for its latest technology, and a major breakthrough for the chipmaker which has struggled with its contract manufacturing business crucial for taking on top rival TSMC.

Intel reported Q1 earnings per share of $0.29, $0.27 better than the analyst estimate of $0.02.