Intel will report third-quarter results on Thursday, offering the first major test of new CEO Lip-Bu Tan’s turnaround plan and a string of high-profile investments that include backing from Nvidia, SoftBank, and even the U.S. government.
The company’s turnaround efforts have been buoyed by nearly $16 billion in new capital, but questions remain over whether the money will translate into sustainable growth. Analysts expect revenue to fall 1% to $13.14 billion and earnings to slip to a $0.22 loss per share, according to LSEG data.
The funding deals — $5 billion from Nvidia, $2 billion from SoftBank, and an $8.9 billion U.S. government stake — were designed to plug financial holes left by years of manufacturing stumbles. Yet, Intel’s margins remain thin, and investors want clarity on how these partnerships fit into its long-term AI and chip foundry ambitions.
Intel continues to face fierce competition from AMD and Arm-based chipmakers, but a rebound in global PC shipments and the rollout of its Panther Lake CPU, built on the new 18A node, could mark early signs of progress.
Meanwhile, Intel’s data center division is expected to post 18% growth, as AI infrastructure demand lifts sales for its server chips. However, share dilution and political scrutiny over the government stake may overshadow near-term gains.
“The investments buy Intel time to fix its fundamentals,” said Ryuta Makino of Gabelli Funds, “but patience won’t last forever if the company can’t execute.”
