Net profit came in at $2.9bn (Â£1.9bn) for the three months to 26 June, against a loss of $398m a year ago - a higher figure than analysts expected.
Revenue for the period was $10.8bn, as a result of what the company called "strong corporate demand".
The firm also forecast improved revenues of $11.6bn for the three months to the end of September.
Intel shares jumped 5% in after-hours trading following the announcement.
Analysts were impressed by the results.
"The numbers just blew me away, I cannot see any mention of any problems whatsoever," said Phani Saripella at Primary Global Research.
Intel is the second major US company to report its quarterly results following aluminium giant Alcoa on Monday, which also beat analysts' expectations.
Some commentators now see these results as a sign of what is to come.
"In a quarter where people expected relatively strong performance, [Intel] beat that pretty handily and set a good forecast," said Edward Snyder at Charter Equity Research.
"This going to be really good for a lot of other technology companies, particularly enterprise.
"It might be the case that this earnings period is so strong that it allays some of the fears about the broader economy."
US chipmaker Intel has reported bumper profits in what it describes as its "best" quarterly results.