Intel surges more than 8% after chipmaker's profits top expectations

Investing.com -- Shares of Intel Corp. (NASDAQ: INTC) surged by more than 8% in premarket U.S. trading on Friday after the chipmaker reported quarterly results that topped Wall Street expectations.

Under recently-installed CEO Lip-Bu Tan, the chipmaker has been working to regain its footing in the semiconductor industry after years of manufacturing delays and market share losses to rivals such as AMD and Nvidia.

The company received $5.7 billion in U.S. government funding during the quarter as part of an $8.9 billion package aimed at bolstering domestic chip production, while Nvidia and Japanese investment giant SoftBank together invested $7 billion in Intel stock. Chief Financial Officer David Zinsner said support improves Intel’s operational flexibility and reflects confidence in its role in the wider chip ecosystem.

Santa Clara, California-based Intel has also completed the sale of a 51% stake in its programmable chip unit Altera, adding $5.2 billion to cash reserves, and said demand across core markets is surpassing supply.

Tan highlighted that soaring enthusiasm around artificial intelligence is driving demand for computing and creating opportunities in Intel’s x86 processors, custom accelerators and foundry services. He has also been pursuing deep cost cuts that have shrunk Intel’s workforce by more than 20% since last year.

So far in 2025, Intel’s stock price has climbed by more than 88%, outpacing the broader market and semiconductor sector.

Third-quarter adjusted earnings came in at $0.23 per share, above analysts’ estimate of $0.01. Revenue rose 3% to $13.7 billion, also ahead of expectations.

Intel sees fourth-quarter revenue between $12.8 billion and $13.8 billion and adjusted earnings of $0.08 a share, both of which are roughly in line with consensus.

"Upside in [the third quarter] is another indication of conservatism, but given supply constraints that we have seen in the market we thought [fourth-quarter estimates] would be higher," analysts at Morgan Stanley including Joseph Moore and Mason Wayne said in a note.

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