Intel (INTC 4.16%) stock is climbing in Thursday’s trading. The company’s share price was up 4% as of 11:30 a.m. ET, according to data from S&P Global Market Intelligence.

Intel stock is gaining ground thanks to the very strong results that Nvidia (NVDA -3.36%) published in its second-quarter results yesterday. But while Nvidia’s Q2 report was enough to power gains for Intel and other players in the artificial intelligence (AI) space, they weren’t enough to push its own stock higher: The company’s share price was down 3.5% as of this writing.

Nvidia’s Q2 report shows AI demand remains very strong

Investors were looking to Nvidia’s Q2 report to provide indications about trends in the AI market, and the company delivered a wide range of positive indicators. The company reported non-GAAP (generally accepted accounting principles) adjusted earnings per share of $0.68 on revenue of $30 billion, which came in significantly better than the average analyst estimate’s call for per-share earnings of $0.64 on sales of $28.7 billion.

Crucially, the company’s AI-driven data-center segment saw revenue increase 154% year over year to hit $26.3 billion. The performance helped drive overall revenue up 122% compared to the prior-year period. With the company posting an adjusted gross margin of 75.7% in the period, it’s clear that Nvidia’s advanced processors are still commanding very strong pricing power.

Intel is aiming to become more competitive with Nvidia in data centers, and signs of strong demand in the space suggest that the overall market opportunity has continued to expand. So while Nvidia’s Q2 results and forward guidance weren’t enough to drive a rally for its stock today, the report has powered gains for many other stocks with exposure to AI trends.

Intel investors actually got a bit of bad news today

With its last quarterly report, Intel detailed a massive restructuring plan that included laying off more than 15,000 of its employees. Today, it was revealed that Republican Senator Rick Scott had sent a letter to Intel’s CEO Pat Gelsinger requesting more information about why the company was implementing such dramatic cuts despite being set to receive $8.5 billion in direct funding through the CHIPS and Science Act and an additional $11 billion in loans.

The letter suggests that Intel could face additional scrutiny about the grants and loans it is receiving from the Department of Commerce, and that there may be obstacles to the semiconductor company receiving more public funding.