Shares of Intel (INTC) - Get Report rose in after-hours trading after the chip maker reported better-than-expected revenue and earnings, raised its full year 2019 guidance and confirmed the sale of most of its modem business to Apple Inc. (AAPL) - Get Report for $1 billion.

Shares rose 5.6% to $55.07 each in postmarket trading Thursday, after having fallen 1.44% in regular hours.

Earnings per share for the second quarter of 2019 came in at an adjusted $1.06, growing 2% year-over-year and beating Wall Street estimates of 96 cents. GAAP EPS was 92 cents, beating estimates of 84 cents. Revenue was $16.5 billion, declining 3% year-over-year but beating analysts expectations of $15.676 billion.

"Second quarter results exceeded our expectations on both revenue and earnings, as the growth of data and compute-intensive applications are driving customer demand for higher performance products in both our PC centric and data-centric businesses," said Intel CEO Bob Swan. "Based on our outperformance in the quarter, we're raising our full-year guidance. Intel's ambitions are as big as ever, our collection of assets is unrivaled, and our transformation continues."

Data center revenue was $4.983 billion in the quarter, beating expectations of $4.89 billion.

Intel raised its full-year guidance for 2019. Management expects revenue to come in at $69.5 billion, above Wall Street's expectations of $68.4 billion. The company expects adjusted EPS to be $4.40.

Separately, Intel said it had signed an agreement to sell Apple the majority of its smartphone modem business for $1 billion. The deal "enables us to focus on developing technology for the 5G network while retaining critical intellectual property and modem technology that our team has created," Swan said in a statement.

The stock is up 10.7% year-to-date.

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