Intel Corp returned to profitability and gave an upbeat revenue forecast after PC demand grew, suggesting that it is making progress on a long and challenging comeback attempt.
In the third quarter, revenue rose 3 percent to US$13.7 billion.
The Santa Clara, California-based company posted its first quarterly net income since the end of 2023, with earnings per share of US$0.23, excluding some items. Analysts had estimated sales of US$13.2 billion and earnings per share of US$0.01 on average, according to data compiled by Bloomberg.
Photo: Reuters
Fourth-quarter sales would be roughly US$13.3 billion, the company said in a statement on Thursday.
Intel shares gained about 8 percent in late trading after closing at US$38.16.
“Current demand is outpacing supply, a trend we expect will persist into 2026,” Intel chief financial officer Dave Zinsner said in the statement.
The company’s third-quarter results exceeded its projections, based on “the underlying strength of our core markets,” he said.
Intel spun off its Altera programmable chip unit last month and now owns a minority stake in the business. That removed US$400 million to US$500 million in revenue from its fourth-quarter projection.
Intel’s guidance “looks better” compared with estimates if you strip out the Altera sales, Zinsner said in an interview.
The outlook signals that Intel is on the right track following a turbulent year. In the stretch of a few months, Intel chief executive officer Lip-Bu Tan (陳立武) secured an unconventional investment from the US government — a transaction brokered by the White House — and won backing from Nvidia Corp and Softbank Group Corp.
The deals with the US government and technology companies are bringing about US$15 billion of new funds that can help shore up Intel’s balance sheet. This month, the chipmaker also announced new products and manufacturing technology.
Intel on a conference call said that it repaid US$4.3 billion in debt during the third quarter, ending the period with US$30.9 billion in cash and short-term investments. Nvidia’s US$5 billion investment, announced last month, is expected to close in the current quarter.
Intel’s factories, despite falling behind the capabilities of rivals such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), are the most advanced plants owned and operated by any US company in its home country.
The company plans to spend about US$18 billion on new plants and equipment this year, and reduce its outlay next year. That level puts it far below what TSMC is spending.
Zinsner said that the company might now be faced with the “high-class problem” of having to spend more next year than it budgeted — to make sure it has enough supply to meet improving demand.
Intel’s client computing division had revenue of US$8.5 billion last quarter, topping the average prediction of US$8.2 billion. Data center sales were US$4.1 billion, compared with a US$3.97 billion estimate.
The Intel Foundry division — its factory unit — generated revenue of US$4.2 billion. That unit currently relies almost exclusively on Intel product divisions for orders, although it is seeking outside clients.
The business is unprofitable and finding those external customers is seen as key to turning it around. Intel Foundry had an operating loss of US$2.3 billion in the third quarter. Still, that was narrower than the US$5.8 billion loss a year earlier and better than the US$3.2 billion loss suffered in the second quarter.
“My conviction in the market potential for Intel Foundry continues to grow,” Tan said.
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