Steam Level increase from Gift

[Knight of Virtuosity]

If I give my friend a gift of game, will it give him the 100XP needed for leveling?

[CausticSoup]

no 50000 xp is needed dude

[Tev]

Gifted games count to the XP counter.

Amount of games	Badge XP
1 game	100 XP badge
2-4 games	100 XP + 6 XP per game
5-9 games	100 XP + 5 XP per game
10-24 games	150 XP + 3.33 XP per games above the 10°
25-49 games	200 XP + 2 XP per game above the 25°
50-99 games	250 XP + 1.5 XP per game above the 50°
100-249 games	325 XP + 1.1667 XP per game above the 100°
For all 250 or more badges	250 XP + 1 XP per game

However, bear in mind that if your friend is a limited user, they won't level up until they've added or spent $5 USD on their account. Received gifts don't unlimit users.