Intel stock jumps as Q3 earnings beat expectations, AI drives chip demand

Intel (Intc) Stock jumped as much as 7% after the bell on Thursday as the chipmaker reported third-quarter earnings and earnings to Wall Street’s attention.

Intel reported $13.7 billion in the three months ended September 27, higher than the $13.15 billion expected by analysts tracked by Bloomberg and $13.28 billion a year earlier. The chipmaker said adjusted earnings per share were $0.23, above the $0.01 Wall Street estimate. The company reported a loss of $0.46 for the same period in 2024.

CEO Lip-Bu Tan said in a statement that “AI accelerates the need to compute and creates great opportunities across our portfolio,” including the company’s most visible business, which is championing the company and its products.

“We believe we are well positioned to play a very important role in Ayi,” added Intel’s head of Invember Relations John Pitzer in an interview with Yahoo Finance.

Intel makes CPUs, or traditional computer processors, used alongside AI chips in data center servers to run artificial intelligence software. Its CPU is also used in computers including AI PCs.

The company said it expects fourth-quarter adjusted EPS of $0.08, less than the $0.10 per share estimated by analysts, Bloomberg Consensus data. The chipmaker forecast revenue of $13.3 billion in the middle of its range, below the $13.4 billion expected.

Intel said its fourth-quarter guidance was below analysts’ estimates because the company’s projections did not include revenue from Alelta-Medicine

Intel’s third-quarter results follow high-profile bailouts from the US government, Nvidia ( NVDA ), and Softbank ( 9984.T ). The government took a 9.9% stake in the chipmaker in late August, with Nvidia’s $5 billion investment reaching a 4% ownership stake. The investment strengthens Intel’s balance sheet

Still, analysts and investors said those investors did little to change Intel’s stance on third-party manufacturing. Intel has been producing its own chips, but opened the business to foreign customers in 2021.

The arm of Intel’s Decuting ARM, Intel Fedry Services, reported an operating loss of $2.3 billion in the third quarter, wider than the $2.2 billion expected due to a loss of $5.8 billion a year ago.

Creative strategies Pricept Analyst Ben Bajarin told Yahoo Finance that, by the way, Intel’s results on Thursday were not caused by “eyes that say,” all eyes moved forward. “