Intel (NASDAQ: INTC) beat all market expectations with its third-quarter earnings report released on Thursday, October 23, which cited $13.7 billion in revenue (a 3% increase year-over-year).
Investors chalk the growth up mostly to the cost-cutting measures the company implemented in September, which allowed it to tidy up its balance sheets amid high-profile backing.
Indeed, the report was the first earnings announcement following the multibillion-dollar investment from Nvidia (NASDAQ: NVDA) and the hefty U.S. government stake this summer.
In hindsight, the latter appears much more exciting. Namely, Intel stock closed at $24.80 on August 22 following the news that the $9 billion in federal grants issued by the Biden administration would translate into a roughly 10% equity share for Trump. Now, it sits at $41.35 in pre-hours trading on Friday, October 24, having risen more than 8%.
In other words, the Trump Administration is up nearly 67% on Intel stock position in two months.
Intel stock recovers
For the quarter, Intel posted a net income of $4.1 billion, a sharp turnaround from $16 billion in losses a year earlier. Adjusted earnings per share (EPS) came in at $0.23, reversing a $0.46 loss during the same quarter in 2024.
As mentioned, under CEO Lip-Bu Tan’s leadership, the company has implemented sweeping restructuring measures, including layoffs affecting 15% of its workforce, in order to remain competitive.
However, while the approach has obviously been helpful, Intel’s growing revenue is also the result of the steady demand for its x86 processors, which remain central to the artificial intelligence (AI) sector.
“Our Q3 results reflect improved execution and steady progress against our strategic priorities. AI is accelerating demand for compute and creating attractive opportunities across our portfolio… 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,” said Lip-Bu Tan.
Looking ahead, the company guidance for Q4 includes EPS of $0.08 and projected revenue of around $13.3 billion. However, the management states the outlook excludes potential revenue from Altera, the semiconductor subsidiary that was partially divested last quarter.
Not all is sunshine and rainbows, though, as Intel’s manufacturing arm, Intel Foundry Services (IFS), has witnessed an operating loss of $2.3 billion, a bit higher than the projected $2.2 billion but nonetheless a notable improvement from $5.8 billion a year earlier.
Featured image via Shutterstock
