Chipmaker posts surprise profit and revenue growth amid AI-driven demand and government-backed investments
Intel Corporation (INTC) saw its stock jump as much as 7% in after-hours trading Thursday after the chipmaker delivered third-quarter results that exceeded Wall Street expectations, signaling early progress in its turnaround efforts under new CEO Lip-Bu Tan.
The company reported $13.7 billion in revenue for the quarter ended September 27, surpassing analyst estimates of $13.15 billion and marking a modest increase from $13.28 billion a year earlier. Adjusted earnings per share came in at $0.23, sharply beating Wall Street’s projection of just $0.01. This performance represents a significant recovery from the $0.46 per share loss Intel reported during the same period in 2024.
CEO Tan credited the rebound to the surge in artificial intelligence (AI) demand, saying, “AI is accelerating demand for compute and creating attractive opportunities across our portfolio.” Intel’s head of investor relations, John Pitzer, echoed the sentiment, adding that the company is “well-positioned to play a more significant role in AI.”
Despite the upbeat results, Intel’s fourth-quarter outlook disappointed some analysts. The company forecast adjusted EPS of $0.08 and revenue around $13.3 billion, slightly below consensus estimates. Intel noted that these projections exclude potential contributions from Altera, a semiconductor subsidiary that was partially divested during the quarter.
Intel’s Q3 performance follows major investments that have strengthened its balance sheet — including a 9.9% U.S. government stake and a $5 billion investment from Nvidia, representing a 4% ownership share. However, concerns persist around Intel’s Foundry Services division, which posted a $2.3 billion operating loss, narrower than last year’s $5.8 billion loss but still significant.
While Intel’s resurgence in profitability and AI momentum have reinvigorated investor confidence, analysts warn that its long-term success will depend on restoring competitiveness in advanced chip manufacturing and attracting third-party customers to its foundry business.
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