As a result of the presentation of quarterly results that were better than traders anticipated, Intel Corporation saw a significant boost of more than eight percent in premarket trading in the United States on Friday. Following a period characterized by manufacturing problems and a drop in market share compared to competitors such as AMD and Nvidia, the chipmaker is working hard to regain its position within the semiconductor industry. This endeavor is being led by Lip-Bu Tan.
As part of a project worth $8.9 billion aimed at improving domestic chip production, the corporation secured $5.7 billion in funds from the United States government during the quarter. The Japanese investing giant SoftBank and the Japanese technology company Nvidia made a combined investment of seven billion dollars in Intel stock. David Zinsner remarked that this support increases Intel’s operating flexibility and demonstrates confidence in the company’s position within the larger semiconductor ecosystem. Intel, headquartered in Santa Clara, California, also completed the sale of a 51% stake in its programmable chip branch, Altera, contributing $5.2 billion to its cash reserves. The company reported that demand in its primary markets currently exceeds supply.
Tan highlighted that growing interest in artificial intelligence is driving up the need for computing, creating opportunities for Intel’s x86 CPUs, custom accelerators, and foundry services. Additionally, he has implemented considerable cost reductions, which led to a reduction of Intel’s staff by more than twenty percent since the previous year. The stock price of Intel has increased by more than 88 percent in 2025, surpassing the growth of both the overall market and the semiconductor industry. Adjusted earnings for the third quarter were $0.23 per share, exceeding analysts’ expectations of $0.01 per share, while revenue increased 3% to $13.7 billion, higher than anticipated.
Intel anticipates fourth-quarter revenue between $12.8 billion and $13.8 billion, with adjusted earnings of $0.08 per share, both closely aligned with market expectations. Analysts including Joseph Moore and Mason Wayne, noted that the optimistic outlook for the third quarter reflects prudence; however, considering the supply restrictions in the market, projections for the fourth quarter are expected to be elevated.