Intel (INTC.O) posted stronger-than-expected third-quarter earnings, driven by aggressive cost-cutting, divestments, and a wave of strategic investments from Nvidia, SoftBank, and the U.S. government that have revived confidence in the once-struggling chipmaker. Shares jumped 7% in after-hours trading, marking a turning point in Intel’s recovery effort under CEO Lip-Bu Tan.
The company reported adjusted earnings of $0.23 per share, surpassing Wall Street’s estimate of $0.01, while gross margins rose to 40%, well above forecasts. Analysts attributed the performance to disciplined expense management, stronger-than-expected data center demand, and the influx of $15 billion in new strategic funding, which Tan said “shores up the balance sheet” and positions Intel for a new phase of growth.
Intel has endured years of setbacks as AMD and Nvidia seized market share in CPUs and AI chips. However, the firm’s fortunes have improved after securing a $5 billion investment from Nvidia, $2 billion from SoftBank, and a $8.9 billion U.S. government stake, giving Washington a 10% ownership share in the company. Analysts say the unusual mix of private and public capital signals a renewed strategic importance for Intel in U.S. technology policy.
Tan’s sweeping restructuring—cutting over one-fifth of Intel’s workforce and scaling back his predecessor’s costly manufacturing ambitions—has refocused the company on high-efficiency chip design and selective production. Intel’s central engineering group will now compete directly with Broadcom and Marvell by offering custom AI chips to cloud clients such as Google (GOOGL.O) and Amazon (AMZN.O).
While Intel’s 18A manufacturing process remains below industry yield standards, CFO Dave Zinsner said yields should improve by 2027, when the company expects its next generation of AI-capable chips to ramp up. For the current quarter, Intel forecasts revenue between $12.8 billion and $13.8 billion, in line with expectations, and plans capital expenditures of $27 billion in 2025, up from $17 billion this year.
The stock has risen nearly 90% in 2025, outperforming Nvidia’s despite lingering manufacturing challenges. Analysts see Intel’s turnaround as a sign that strategic funding and disciplined execution could reestablish its footing in the evolving AI hardware landscape.
