Intel's Strong Gain: Share Prices Rise

Intel Corporation's Third Quarter Success

Intel Corporation surpassed third-quarter earnings estimates on Thursday, sending its stock price higher. The company reported an adjusted earnings per share of 23 cents and total sales revenue of $13.7 billion. This result significantly exceeded analysts' expectations of a 1 cent earnings per share.

Net income was $4.1 billion, marking a significant improvement from the $16.6 billion loss during the same period last year. Intel's earnings announcement came with support from major investors like Nvidia and SoftBank, as well as historic backing from the U.S. government.

The company's CEO, Lip-Bu Tan, implemented stringent measures to reduce costs, achieving a significant turnaround. In an effort to lower expenses, the company plans to cut its workforce by 20% compared to last year by discontinuing costly production processes.

Last year, Intel's stock price fell by nearly 60%; this decline was attributed to challenges in competing with AMD in PC and CPU production and failures in its efforts to enter the artificial intelligence chip market. However, by 2025, Intel's stock price has increased by nearly 90%, surpassing Nvidia.

The company expects fourth-quarter revenue to be in the range of $12.8 to $13.8 billion. Chief Financial Officer Dave Zinsner noted that demand for Intel chips during the third quarter was strong, and supply was tight. However, the available chip ratio for high-performance 18A chips is not expected to meet industry standards until 2027.

Reuters reported in August that Intel was struggling with yield issues in its 18A manufacturing technology.