- The quarterly results also exceeded the company’s guidance issued in late July.
- CEO Lip-Bu Tan said, “Our Q3 results reflect improved execution and steady progress against our strategic priorities.”
- Intel’s stock is on track to top the $40 psychological level for the first time since early April in 2024.
Intel Corp. (INTC) stock jumped nearly 8% in Thursday’s extended session after the chipmaker announced better-than-expected third-quarter results, riding on the artificial intelligence (AI)-related demand for its PCs and other products. The company also issued a robust forward outlook.
Thanks to the company’s strategic initiatives and external investments, Intel’s stock has gained 90% this year.
Intel’s Q3 Earnings Snapshot
Santa Clara, California-based Intel reported adjusted earnings per share (EPS) of $0.23 for the third quarter of the fiscal year 2025, turning around from a loss of $0.46 in the year-ago quarter. Revenue climbed 3% year-over-year (YoY) to $13.7 billion.
According to the Fiscal.ai consensus, the company was expected to report an adjusted EPS of $0.01 and revenue of $13.11 billion. The results also exceeded the company’s guidance issued in late July.
Commenting on the results, CEO Lip-Bu Tan said, “Our Q3 results reflect improved execution and steady progress against our strategic priorities.” He noted that AI accelerated demand for compute, creating opportunities for the company’s portfolio of products, including its core x86 platforms, new efforts in purpose-built ASICs and accelerators, and foundry services.
Among business segments, Intel’s Client Computing Group (CCG) recorded YoY revenue growth of 5% to $8.5 billion, helping to offset the 1% drop in Data Center and AI (DCAI) revenue ($4.1 billion). Intel Foundry revenue fell 2% to $12.7 billion. On the earnings call, management noted better-than-expected PC AI revenue of $4.1 billion, marking 5% sequential growth, according to a transcript of the call provided by Koyfin. The company generated $2.5 billion in cash from operations during the quarter.
Intel’s Q3 marked the fourth consecutive quarter of improved execution, the company said. Its balance sheet strengthened during the quarter, thanks to investments by the U.S. government (10% stake), Nvidia ($5 billion) and SoftBank Group ($2 billion). The company said it received $5.7 billion of the total $8.9 billion in earmarked government funding during the quarter.
In a post on X, CNBC Mad Money host Jim Cramer said, “Lip-Bu Tan is so great. That Intel quarter was something. What a terrific manager he is.” In a separate post, he noted that demand outpaced supply across the PC chain.
What Intel Models For Q4
For the fourth quarter, Intel expects adjusted EPS of $0.08, in line with the Street estimate, and revenue of $12.8 billion to $13.8 billion versus the consensus of $13.35 billion. The company expects adjusted gross margin to be at 36.5%.
CFO David Zinser noted that current demand outpaced supply and expected the trend to persist into 2026. The company expects client consumption total addressable market (TAM) to approach 290 million units in 2025, marking the fastest TAM growth since 2021. “We’re prudently preparing for another year of strong demand in 2026 as Core Ultra 3 ramps into a healthy PC ecosystem,” Zinser said on the call.
What Retail’s Saying About Intel’s Q3 Print
Intel was the top-trending equity ticker on Stockwits late Thursday. Retail sentiment toward the stock flipped to ‘bullish’ by late Thursday, from ‘bearish’ the day before. Retail chatter also improved to ‘high’ levels, with the 24-hour message volume leading up to late Thursday rising by 285%.
A bullish user said Intel’s stock is positioned for the best gains for the year if the company continues to execute.
Another user lauded the company’s resurgence. “What a comeback! Ending this year close to $60 will be perfect,” they said.
Intel Stock Tops $40
Following the post-earnings stock reaction in the after-hours session, Intel’s stock topped the $40 mark. If the gains are sustained in Friday’s regular session, the stock is on track to top the psychological level for the first time since early April in 2024.
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