Key Stats for Intel Stock
- Price Change for $INTC stock: 7%
- Current Share Price: $41
- 52-Week High: $41
- $INTC Stock Price Target: $28
What Happened?
Intel (INTC) stock is up 7% after the chipmaker reported Q3 results that beat Wall Street expectations, signaling that demand for its core x86 processors has recovered.
Revenue came in at $13.65 billion versus estimates of $13.14 billion, while adjusted earnings per share stood at $0.23, above estimates of $0.01
The company posted a GAAP net income of $4.1 billion, or 90 cents per share, a massive turnaround from the $16.6 billion net loss recorded in the year-ago quarter.
Intel received $5.7 billion from the U.S. government during the quarter as part of the Trump administration’s $8.9 billion investment negotiated in August.
Intel recorded a per-share loss of 37 cents in the quarter, reflecting escrow shares that will be released to the government.
The administration purchased 433.3 million shares at $20.47 per share, making the U.S. government an essential partner in Intel’s manufacturing ambitions.
For the fourth quarter, Intel expects revenue of $13.3 billion at the midpoint, with adjusted earnings per share of $0.08, in line with consensus estimates.
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What the Market Is Telling Us About INTC Stock
The market’s positive reaction to INTC stock shows investors are encouraged by signs of demand recovery and the strategic partnerships taking shape, even though massive challenges remain with the foundry business.
CEO Lip-Bu Tan said, “AI is accelerating demand for compute and creating attractive opportunities across our portfolio,” and the numbers backed that up.
Intel’s products group reported $12.7 billion in sales, up 3% year over year. The Client Computing Group, which includes chips for PCs and laptops, generated $8.5 billion in revenue.
Data center CPUs generated $4.1 billion in sales, down 1% year-over-year, but Intel hopes its deal with Nvidia can help revive growth in that segment.
The two companies will integrate Intel’s central processors alongside Nvidia’s AI graphics processors, which currently dominate 90% of the AI chip market. Intel received a $5 billion investment from Nvidia in September as part of the arrangement.
Intel said demand for its chips outpaced supply, a trend it expects to continue through next year. That’s a positive signal that the company’s turnaround efforts are gaining traction, at least on the products side of the business.
The long-term driver for Intel stock is the Intel Foundry Services, the manufacturing arm that’s open to outside customers.
The division reported $4.2 billion in sales during the quarter, down 2% year-over-year, with all revenue coming from Intel using the foundry to build its own chips.
Operating loss came in at $2.3 billion, wider than the $2.2 billion expected but an improvement from the $5.8 billion loss in the prior year.
Wall Street fears that heavy spending on the foundry segment may not pay off. The business requires $100 billion in capital investment and has yet to secure a major outside customer.
Intel started production of its most advanced chips in Arizona during the quarter, but attracting external commitments remains the critical challenge.
Intel is no longer promoting its latest 18A chip production process to attract outside customers. Initial reports indicated both Nvidia and Broadcom were testing the technology, but deals with those firms failed to materialize.
Instead, Intel shifted primarily to using 18A for its own internal products, including the Core Ultra series 3 chips and its Xeon 6+ next-generation data center chip, slated to launch in the first half of 2026.
Intel stock got a boost from CEO Tan’s commitment to the Trump administration’s vision, saying “we are fully committed to advancing the Trump administration’s vision to restore semiconductor production and proudly welcome the US government as an essential partner in our efforts.”
That political alignment matters given Intel’s geopolitical significance as the only U.S.-based, large-scale advanced semiconductor manufacturer.
The company cut headcount to 88,400 employees from 124,100 at the same time last year, showing management is serious about cost discipline while navigating the transformation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
