Intel (INTC) stock surged more than 7% in premarket trading Friday following an upbeat Intel stock earnings report for the third quarter of 2025. The chip giant outperformed Wall Street forecasts on both revenue and profit, fueled by rising demand for artificial intelligence (AI) chips and a rebound in core computing markets.
The company posted revenue of $13.7 billion for the quarter ending September 27, surpassing analyst expectations of $13.15 billion and slightly ahead of last year’s $13.28 billion. Adjusted earnings per share came in at $0.23, a strong recovery from a $0.46 loss in the same period last year and well above the $0.01 projected by analysts.
AI Boom Drives Growth
Intel’s leadership attributed the company’s rebound to the accelerating adoption of AI technologies across industries. CEO Lip-Bu Tan stated that “AI is accelerating demand for compute and creating attractive opportunities across our portfolio,” emphasizing that both Intel’s CPU and AI chip segments are benefiting from this trend.
AI has become a critical growth driver, especially for Intel’s data center and PC businesses, which have faced fierce competition from rivals like Nvidia and AMD. The demand for AI PCs and servers using Intel’s CPUs has bolstered confidence in the company’s broader turnaround strategy.
Intel’s head of investor relations, John Pitzer, noted that the company is “well-positioned to play a more significant role in AI,” underscoring the importance of integrating AI capabilities into its existing chip infrastructure.
Mixed Guidance for Q4
While the intel stock earnings results for Q3 exceeded expectations, Intel’s forecast for the fourth quarter was more conservative. The company expects adjusted EPS of $0.08, slightly below Wall Street’s estimate of $0.10 per share. Revenue is projected at around $13.3 billion, compared to the $13.4 billion consensus.
The company explained that the guidance excludes revenue from its partially divested subsidiary Altera, a semiconductor unit that contributed to earlier quarters. Despite this, Intel remains optimistic about its long-term trajectory, especially as AI demand continues to reshape the chipmaking landscape.
Strategic Investments Strengthen Balance Sheet
Recent investments from major players have also strengthened Intel’s financial outlook. The U.S. government acquired a 9.9% stake in the company in August, while Nvidia’s $5 billion investment secured a 4% ownership position. These moves signal growing institutional confidence in Intel’s transformation strategy under CEO Lip-Bu Tan.
SoftBank has also joined the list of investors, further validating Intel’s renewed push into AI-driven manufacturing and foundry services. However, some analysts caution that these investments, while encouraging, may not fully resolve Intel’s manufacturing challenges.
Foundry Services Still in Focus
Intel’s manufacturing division, Intel Foundry Services, continues to be a focal point for analysts. The division reported a third-quarter operating loss of $2.3 billion, slightly worse than the $2.2 billion expected but a notable improvement from the $5.8 billion loss last year.
Industry analyst Ben Bajarin of Creative Strategies described the results as “a sign of cautious optimism.” He added that while Intel’s short-term gains are promising, “all eyes move to foundry” as the company works to expand its third-party manufacturing business and compete more effectively with Taiwan Semiconductor Manufacturing Co. (TSMC).
Investor Sentiment and Stock Performance
Following the upbeat earnings report, INTC stock jumped sharply in premarket trading, pushing the intel stock price higher on strong investor enthusiasm. As of October 23, INTC stock price closed at a new monthly high, reflecting renewed confidence in Intel’s strategic shift toward AI integration and manufacturing efficiency.
Market observers note that sustained growth will depend on Intel’s ability to execute on its foundry roadmap and maintain profitability amid global chip competition. Still, the positive intel earnings momentum is a strong sign that the company is regaining stability after several challenging quarters.
Outlook: Intel’s AI Future Looks Promising
The third-quarter performance marks a turning point for Intel as it repositions itself within the rapidly evolving AI and semiconductor landscape. With a renewed focus on AI chip design, strategic partnerships, and government-backed investments, Intel appears to be regaining ground against its competitors.
As investors monitor upcoming INTC earnings and intel stock earnings report updates, the market will look for continued progress in Intel’s foundry operations and sustained AI-driven growth.
Stay updated on the latest startup, tech, and investment news at StartupNews.fyi.
