SANTA CLARA / LONDON (IT BOLTWISE) – Intel beat Wall Street expectations in the third quarter, although its fourth quarter forecast fell short. The company’s shares rose more than 7% in after-hours trading, reflecting investor confidence in the company’s strategic progress.
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Intel, the well-known chipmaker based in Santa Clara, California, recently reported impressive third-quarter results that significantly exceeded Wall Street’s expectations. The company had adjusted earnings of 23 cents per share on revenue of $13.65 billion. Analysts had only expected a profit of 2 cents per share on sales of $13.17 billion. Compared to the previous year, when Intel reported a loss of 46 cents per share on sales of $13.28 billion, there is a significant improvement.
Although fourth-quarter guidance for adjusted earnings of 8 cents per share on revenue of $13.3 billion was below analysts’ expectations of 10 cents per share on revenue of $13.42 billion, the market reacted positively. Intel shares rose more than 7% to $41.08 in after-hours trading, after rising 3.4% to $38.16 during the regular session.
Intel CEO Lip-Bu Tan emphasized in a press release that the third quarter results reflect improved execution and steady progress toward the company’s strategic priorities. He highlighted that demand for computing power is being accelerated by artificial intelligence (AI), creating attractive opportunities across the portfolio, including core x86 platforms, new initiatives in specialized ASICs and accelerators, and foundry services.
Notably, Intel’s PC chip business was the top performer in the third quarter, with revenue up 5% year over year to $8.5 billion. In contrast, data center and AI chip sales fell 1% to $4.1 billion. These developments show that despite challenges in certain segments, Intel continues to be able to grow in other areas.
Another notable aspect is NVIDIA’s recent $5 billion investment in Intel shares, part of a collaboration between the two companies. This news caused Intel shares to break out of a 29-week consolidation pattern on September 18, rising 22.8% to $30.57. Additionally, the US government announced an $8.9 billion investment in Intel in August, representing a 9.9% stake in the company. Japan’s SoftBank Group also recently invested $2 billion in Intel.
These investments and strategic partnerships underscore the confidence in Intel’s ability to successfully transform under the new leadership of CEO Tan, who took over on March 18. While the market remains volatile, with these developments Intel shows that it is ready to face the challenges of the future and strengthen its position in the global chip market.
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