INTC stock today latest news: Intel stock jumps as chip demand rebounds and revenue tops Wall Street estimates

INTC stock: Intel stock The chipmaker rose more than 7% in after-hours trading Thursday as the chipmaker reported quarterly revenue that beat Wall Street expectations, signaling renewed demand for its core x86 processors used in personal computers, according to a report.

Intc shares rise over 7% after strong third quarter results

According to LSEG consensus estimates, Intel generated $13.65 billion in revenue in the third quarter, exceeding expectations of $13.14 billion, CNBC reported. The company reported adjusted earnings of 23 cents per share, but that figure was not directly comparable to analyst estimates, according to the report.
Intel recorded a loss of 37 cents per share due to shares in escrow tied to its $8.9 billion investment deal with the U.S. government, according to a CNBC report. According to the report, this deal, negotiated by the Trump administration in August, enabled the government to purchase 433.3 million Intel shares at $20.47 each.
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Intel issues cautious Q4 guidance

For the coming 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 estimates, as reported by CNBC. According to the report, the company said its forecast did not include the impact of the recent sale of its Altera subsidiary.

Profits rebound as Intel posts $4.1 billion in net income

Intel reported net income of $4.1 billion, or 90 cents per share, compared to a net loss of $16.6 billion a year earlier, according to the report. The company said it received $5.7 billion from the U.S. government during the quarter. ALSO READ: Chauncey Billups, Terry Rozier and other NBA players arrested for illegal gambling – here’s how they work

Delay in SEC guidance could impact future results

Intel stated that it had sought guidance from the Securities and Exchange Commission (SEC), as reported by CNBC, but had not yet received a response due to the ongoing US government shutdown, and warned investors, saying, “There is limited precedent for accounting for these types of transactions.” The company also warned that the results may be revised later depending on regulatory feedback.

Nvidia invests $5 billion in Intel partnership

According to the report, Intel also received a $5 billion investment from Nvidia in September; This marks a rare partnership between the two rivals. The deal will see Intel’s central processing units (CPUs) integrated with Nvidia’s AI graphics processors, which currently account for about 90% of the AI ​​chip market.

Intel demand outpaces supply amid chip recovery

Intel said demand for its chips outpaced supply in the third quarter, and it expects that trend to continue next year, according to a CNBC report.

Intel’s Product Line sees moderate growth

The company’s Product Line generated sales of $12.7 billion, up 3% from the previous year. Of that, $8.5 billion came from Customer Computing Group, which makes chips for PCs and laptops, and $4.1 billion came from data center CPUs, which fell 1% year over year, according to a CNBC report. Intel said it hopes the Nvidia collaboration will help stimulate growth in its data center business.

Foundry unit struggles to find external customers

Investors are also watching Intel’s foundry business, which produces chips for external customers and represents a key part of the company’s turnaround strategy. The foundry requires $100 billion in capital investment and has yet to land major customers; however, Intel began producing its most advanced chips at its Arizona facility this quarter.

Foundry revenue was $4.2 billion, down 2% from the prior year, with all sales coming from Intel’s internal chip production.

Intel is reducing its workforce during restructuring process

According to the report, Intel said its headcount fell to 88.4 million from 124 million a year ago as it continued its efforts to streamline operations and increase profitability.

FAQ

Why did Intel shares jump after earnings?
That’s because the company reported stronger-than-expected revenue and showed signs of recovery in computer chip demand.

How much revenue did Intel report in the third quarter?
Intel reported revenue of $13.65 billion, beating Wall Street forecasts.