Intc stock jumps over 7% after strong Q3 results
According to LSEG consensus estimates, Intel posted third-quarter revenue of $13.65 billion, beating expectations of $13.14 billion, reported CNBC. The company reported adjusted earnings of 23 cents per share, though the figure wasn’t directly comparable to analyst forecasts, as per the report.
Intel recorded a per-share loss of 37 cents to account for shares in escrow tied to its $8.9 billion investment agreement with the US government, as per the CNBC report. That deal, negotiated by the Trump administration in August, saw the government purchase 433.3 million Intel shares at $20.47 each, as per the report.
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Intel issues cautious Q4 guidance
For the upcoming quarter, Intel expects revenue of about $13.3 billion at the midpoint, with adjusted earnings of 8 cents per share, roughly in line with analyst projections, as reported by CNBC. The company said its forecast excludes the impact of the recent sale of its Altera subsidiary, as per the report.
Profit rebounds as Intel posts $4.1 billion in net income
Intel reported net income of $4.1 billion, or 90 cents per share, compared with a net loss of $16.6 billion a year earlier, as per the report. The company said it received $5.7 billion from the US government during the quarter.ALSO READ: Chauncey Billups, Terry Rozier among other NBA players arrested for illegal gambling – here’s how they operated
SEC guidance delay could impact future results
Intel cautioned investors, saying, “There is limited precedent for the accounting treatment of such transactions,” noting it sought guidance from the Securities and Exchange Commission (SEC) but has yet to receive an answer due to the ongoing US government shutdown, as reported by CNBC. The company also warned that results could be revised later depending on regulatory feedback.
Nvidia invests $5 billion in Intel partnership
In September, Intel also secured a $5 billion investment from Nvidia, marking a rare partnership between the two rivals, as per the report. The deal will see Intel’s central processing units (CPUs) integrated with Nvidia’s artificial intelligence graphics processors, which currently make up about 90% of the AI chip market.
Intel’s demand outpaces supply amid chip rebound
Intel said demand for its chips outpaced supply in the third quarter, a trend it expects to continue into next year, as per the CNBC report.
Intel’s Products Group sees modest growth
The company’s Products Group generated $12.7 billion in sales, up 3% from a year ago. Of that, $8.5 billion came from its Client Computing Group, which makes chips for PCs and laptops, while $4.1 billion came from data center CPUs, a segment that slipped 1% year over year, as per the CNBC report. Intel said it hopes the Nvidia collaboration will help revive growth in its data center business.
Foundry unit struggles to find external clients
Investors are also watching Intel’s foundry business, which manufactures chips for external clients and represents a key part of the company’s turnaround strategy. The foundry requires $100 billion in capital investment and has yet to secure major customers, though Intel began producing its most advanced chips at its Arizona facility during the quarter.
Foundry revenue came in at $4.2 billion, down 2% from the previous year, with all sales coming from Intel’s internal chip production.
Intel trims workforce amid restructuring
Intel said its employee count stood at 88.4 million, down from 124 million a year earlier, as it continues efforts to streamline operations and improve profitability, as per the report.
FAQs
Why did Intel stock jump after earnings?
Because the company reported stronger-than-expected revenue and signs of recovering PC chip demand.
How much revenue did Intel report in Q3?
Intel reported $13.65 billion in revenue, beating Wall Street estimates.
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