TLDR
- Intel posted Q3 revenue of $13.7 billion, surpassing the $13.15 billion analyst consensus, with adjusted EPS of $0.23 versus $0.01 expected.
- The U.S. government invested $8.9 billion for a 10% stake in Intel, making it the chipmaker’s largest shareholder as part of a domestic semiconductor production push.
- Nvidia invested $5 billion for a 4% ownership stake, while SoftBank also backed the company, strengthening Intel’s financial position during its turnaround.
- CEO Lip-Bu Tan reduced Intel’s workforce by over 20%, cutting employee count from 124,100 to 88,400 year-over-year.
- Intel’s foundry division lost $2.3 billion in Q3 and is shifting from 18A to 14A manufacturing technology after failing to secure major outside customers.
Intel shares surged over 7% in premarket trading Friday following better-than-expected third-quarter results. The chipmaker delivered revenue of $13.7 billion for the three months ending September 27.
Wall Street had projected $13.15 billion. Adjusted earnings per share came in at $0.23, crushing the $0.01 consensus.
This marks Intel’s first quarterly report since the U.S. government became its top shareholder. In August 2025, the Trump administration invested $8.9 billion for a 10% stake at $20.47 per share.
Intel received $5.7 billion from the government during Q3. The company posted net income of $4.1 billion, or 90 cents per share, reversing a $16.6 billion net loss from the same quarter in 2024.
CEO Lip-Bu Tan said AI is accelerating demand for compute across Intel’s portfolio. The company makes CPUs that work alongside AI chips in data center servers and AI-enabled personal computers.
Major Investments Fuel Turnaround Hopes
Intel landed a $5 billion investment from Nvidia in September 2025. The deal gives Nvidia a 4% ownership stake and includes integration of Intel processors with Nvidia’s AI graphics chips.
SoftBank also invested in the chipmaker during this period. These investments, combined with the government stake, have boosted Intel’s balance sheet and investor confidence.
Intel stock has rallied more than 90% in 2025. The gains topped both Nvidia and AMD over the same timeframe.
John Pitzer, Intel’s head of investor relations, told Yahoo Finance the company is well-positioned for a larger role in AI. However, Intel trades at a forward P/E ratio of 71.51 compared to Nvidia’s 30.49 and AMD’s 40.14.
Intel’s Client Computing Group generated $8.5 billion in sales. Data center CPUs brought in $4.1 billion, down 1% year-over-year.
The company reported chip demand is outpacing supply. The trend is strongest in data centers where operators are upgrading CPUs for AI workloads.
Foundry Business Struggles Continue
Intel Foundry Services posted a $2.3 billion operating loss in Q3. That’s wider than the $2.2 billion expected but improved from last year’s $5.8 billion loss.
The foundry division generated $4.2 billion in revenue, down 2% annually. Intel opened this manufacturing business to outside customers in 2021 after decades of producing only its own chips.
The business has failed to attract major customer commitments. Intel is no longer promoting its 18A chip production process to outside clients after deals with Nvidia and Broadcom failed to materialize.
Intel now uses 18A primarily for internal products. These include Core Ultra series 3 chips and the Xeon 6+ data center chip launching in early 2026.
Finance chief Dave Zinsner warned that 18A yields remain below industry standards. They won’t reach acceptable levels until 2027.
Intel is pivoting to its next-generation 14A manufacturing process. Pitzer said early customer feedback on 14A has been positive and development is ahead of where 18A was at a similar stage.
Cost Cuts and Q4 Outlook
Tan has slashed Intel’s workforce by over 20% since taking charge. Employee count dropped from 124,100 to 88,400 year-over-year.
The CEO also sold a majority stake in subsidiary Altera. He’s shifted capital strategy toward external commitments rather than heavy internal spending.
Intel expects Q4 adjusted EPS of $0.08, below the $0.10 consensus. The company forecasts revenue of $13.3 billion at the midpoint, under the $13.4 billion expected.
Intel said Q4 guidance excludes Altera revenue. The company started production of its most advanced chips in Arizona during the quarter.
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