Intel Shares Surge Nearly 9% After Beating Q3 Revenue Expectations
Intel shares jumped nearly 9% in premarket trading on Friday following the release of the company’s third-quarter earnings report. Intel reported revenue of $13.65 billion, surpassing analyst estimates of $13.14 billion. Adjusted earnings came in at 23 cents per share, while net income totaled $4.1 billion, or 90 cents per share—marking a significant turnaround from a net loss of $16.6 billion in the same quarter last year.
### U.S. Government Becomes Top Intel Shareholder
This earnings report is Intel’s first since the U.S. government became its largest shareholder in August 2025, acquiring a 10% stake through an $8.9 billion investment. Negotiated during the Trump administration, the government purchased 433.3 million shares at $20.47 per share. Intel received $5.7 billion from the government during Q3. The company recorded a per-share loss of 37 cents to account for shares held in escrow, which will be released to the government in due course.
CEO Lip-Bu Tan expressed commitment to advancing the administration’s vision to restore semiconductor manufacturing in the United States, highlighting the government partnership as a key element of Intel’s ongoing turnaround strategy.
### Financial Support from Major Investors
Intel also secured significant investments from major industry players. Nvidia invested $5 billion in September 2025, establishing a strategic relationship that includes integrating Intel’s central processors with Nvidia’s AI graphics processors—which currently control 90% of the AI chip market. Additionally, Japan’s SoftBank invested during this period, providing further financial backing.
These investments, combined with the government stake, have provided Intel with crucial financial support as the company works to regain stability in a highly competitive market.
### Strong Stock Performance Amid Market Challenges
Intel’s stock has rebounded more than 90% in 2025, outperforming AI chip leaders Nvidia and AMD during the same period. Despite this recovery, Intel trades at a 12-month forward price-to-earnings ratio of 71.51, compared to 30.49 for Nvidia and 40.14 for AMD.
Ben Bajarin, CEO of Creative Strategies, noted that Intel has turned a corner and described the current trajectory as a strong setup heading into 2026. Intel reported that demand for its chips is outpacing supply, particularly in data centers, where operators are upgrading CPUs to support AI workloads. The company’s Client Computing Group generated $8.5 billion in sales, while data center CPUs brought in $4.1 billion, down 1% year-over-year.
### Cost-Cutting and Manufacturing Hurdles
Since taking over as CEO, Lip-Bu Tan has implemented aggressive cost-cutting measures, including slashing over 20% of the workforce—reducing headcount from 124,100 to 88,400 employees year-over-year. Tan also sold a majority stake in Intel’s Altera subsidiary and shifted the company’s capital strategy to rely more on external commitments rather than heavy internal spending.
Intel’s manufacturing ambitions have been scaled back under Tan’s leadership. Intel Foundry, the division that makes chips for other companies, reported $4.2 billion in sales during the quarter—a 2% decline year-over-year. The foundry business requires an estimated $100 billion in capital investment and has yet to secure a major customer outside of Intel itself.
Finance chief Dave Zinsner cautioned investors that yields for Intel’s advanced 18A manufacturing process remain below industry standards and are not expected to reach acceptable levels until 2027. During the quarter, Intel began production of its most advanced chips at its Arizona facility.
### Outlook and Analyst Sentiment
Intel projects fourth-quarter revenue of approximately $13.3 billion at the midpoint, with adjusted earnings of 8 cents per share. However, analysts at Bernstein warned that Intel’s turnaround is far from complete and suggested the current situation might best be described as a “draw” rather than a full victory.
In regulatory news, Intel met with the Securities and Exchange Commission (SEC) to seek approval for its accounting treatment of the government investment. Due to a government shutdown, the company has yet to receive a final decision and indicated that it may revise results in the future.
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Intel’s latest earnings report and strategic partnerships highlight progress amid significant challenges in the semiconductor industry. With a solid financial cushion and commitment to advancing U.S. semiconductor production, Intel aims to strengthen its position in the years ahead, despite ongoing manufacturing obstacles and competitive pressure.
https://coincentral.com/intel-intc-stock-surges-on-revenue-beat-and-government-investment/
