Intel (INTC) reported stronger-than-expected third-quarter 2025 results. The semiconductor company posted solid top-line growth, margin expansion, and a return to profitability, aided by strong AI demand, strategic investments, and expense discipline. INTC stock jumped 6% in the after-hours trading session.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Adjusted earnings per share of $0.23 surpassed the analysts’ consensus estimate of $0.02 per share by a wide margin. Also, it compared favorably with a loss of $0.46 in the last year. Further, sales increased by 3% year-over-year to $13.7 billion and beat the analysts’ expectations of $13.16 billion.
Importantly, Intel’s gross margin reached 40.0%, reflecting improved cost control and product mix.
Capital Infusion Aids Intel’s Turnaround
Intel’s performance is benefiting from recent investments, which helped strengthen its balance sheet and fund its turnaround.
Intel’s collaboration with Nvidia (NVDA) to co-develop custom data center and PC products is considered a major strategic win. Nvidia’s $5 billion investment in Intel stock, alongside SoftBank’s (SFTBY) $2 billion stake, signals strong confidence in Intel’s long-term roadmap.
The company also received $5.7 billion in U.S. Government funding during the reported quarter, part of a broader $8.9 billion commitment to support domestic semiconductor leadership. Together, these investments have supported Intel’s expansion moves and fueled a 90% stock rally in 2025 so far.
Outlook
For Q4, Intel expects revenue between $12.8 billion and $13.8 billion, with adjusted EPS of $0.08. For reference, analysts are projecting an adjusted EPS of $0.08 on revenue of $13.37 billion.
CFO David Zinsner noted that demand is currently outpacing supply, a trend expected to continue into 2026, especially in AI and compute-heavy segments.
Is INTC Stock a Buy?
Intel stock has a consensus Hold rating based on two Buy, 26 Hold, and six Sell recommendations assigned in the past three months. The average INTC price target of $29.13 implies 22.98% downside from current levels.
It must be noted that analysts may update their price targets for INTC stock after this earnings report.
