Intel reported healthy earnings and revenues for the third fiscal quarter, signaling to the stock market that the chip maker is on the road back.
Shares of the company are up 6% to $40.45 a share for Intel in after-hours trading. The main reason for the surge as analysts had expect 2 cents a share in adjust earnings per share and it actually came in at 23 cents a share. Revenues were up 3% to $13.7 billion
chipmaker surged in extended trading Thursday, after the company swung to a profit that blew past analysts’ estimates.
Intel posted adjusted earnings of 23 cents per share for the third quarter, compared to a loss in the preceding and year-ago quarters, and well above the 2 cents per share analysts expected. Its revenue rose 3% year-over-year to $13.7 billion, well above the estimate of $13.1 billion.
Intel CEO Lip-Bu Tan, who was hired in March after former CEO Pat Gelsinger left late last year, said the results showed “stead progress” for Intel’s turnaround. Under Tan, Intel did a deal with the U.S. government, SoftBank and Nvidia — and they have now taken equity stakes in Intel. Those moves have strengthened Intel’s balance sheet.
“Our Q3 results reflect improved execution and steady progress against our strategic priorities,” said Tan, in a statement. “AI is accelerating demand for compute and creating attractive opportunities across our portfolio, including our core x86 platforms, new efforts in purpose-built ASICs and accelerators, and foundry services. Intel’s industry-leading CPUs and ecosystem, along with our unique U.S.-based leading-edge logic manufacturing and R&D, position us well to capitalize on these trends over time.”
“We took meaningful steps this quarter to strengthen our balance sheet, including accelerated funding from the U.S. ogvernment and investments by Nvidia and SoftBank Group that increase our operational flexibility and demonstrate the critical role we play in the ecosystem,” said Intel CFO David Zinsner, adding he sees demand for Intel’s products outpacing supply into 2026.
LIntel expects adjusted earnings of 8 cents per share in the fourth quarter on revenue of $12.8 billion to $13.8 billion. That is in line with analysts’ expectations.
To capitalize on accelerated demand for compute, Intel said it is reinvigorating our x86 ecosystem through products and partnerships, and the collaboration with Nvidia is a great example of this.
Intel also said it is making steady progress on Intel 18A and it is on track to bring Panther Lake to the market this year. Fab 52 in Arizona is now fully operational and set to produce the most advanced logic chips in the U.S.