Shares of Intel rallied 3.4% ahead of earnings today and shot 10% higher after hours on a big EPS and revenue beat.
- Non-GAAP EPS 0.23 vs 0.01 expected
- Revenue $13.65B vs $13.14B expected
Gross margins rose to 38.2% from 18% and the company is forecasting fourth-quarter 2025 revenue of $12.8 billion to $13.8 billion (est. $13.3B).
The most-positive comment I saw was from the CFO who said 'current demand is outpacing supply, a trend we expect will persist into 2026'.
“Our Q3 results reflect improved execution and steady progress against our strategic priorities,” said Lip-Bu Tan, Intel CEO. “AI is accelerating demand for compute and creating attractive opportunities across our portfolio, including our core x86 platforms, new efforts in purpose-built ASICs and accelerators, and foundry services. Intel’s industry-leading CPUs and ecosystem, along with our unique U.S.-based leading-edge logic manufacturing and R&D, position us well to capitalize on these trends over time.”
Intel has turned into something of a meme after the US government took a stake. It's not hard to get behind the idea that it could be a winner in the AI/chip race as it's getting the full US government backing to transform itself into a leading foundry. Last week, Nvidia's Jensen Huang touted that INTC had produced top-of-the-line chips for the first time.
If the US government is picking winners and losers, just follow them.
Shares have rallied strongly to $38 from a low of $18.97 in August. After hours, they've shot to $41.37 from $38 at the close, a more than 12% climb. That would be the highest since March 2024.
