Intel Corp. shares surged almost 10% on Friday after the chipmaker reported a surprise profit for the third quarter, beating Wall Street expectations and signaling that its multi-year restructuring is beginning to bear fruit.
The company’s stronger results, aided by cost controls and early traction in artificial intelligence infrastructure, come as Intel works to regain competitiveness against rivals like AMD, Nvidia, and TSMC.

Cost Cuts and Operational Focus Lift Profitability

Intel reported adjusted earnings of $0.23 per share, sharply higher than the consensus estimate of $0.02, on revenue of $13.7 billion, up about 3% from a year earlier. The results reflect the first tangible gains from the company’s cost-reduction initiatives, including factory optimization and workforce restructuring.

CEO Pat Gelsinger highlighted the progress in Intel’s transformation strategy, noting that operational efficiency and tighter capital allocation are key to restoring margins.
“We’re starting to see the benefits of the discipline we’ve built into our operations,” Gelsinger said in a post-earnings briefing. “Our focus on execution is driving better results across the business.”

Intel’s Client Computing Group—which includes its PC chip business—posted stable growth as global PC demand rebounded, while the Data Center and AI segment showed early signs of recovery amid rising demand for AI-driven compute capacity.

AI Strategy Gains Momentum Amid Foundry Challenges

A cornerstone of Intel’s comeback plan is its pivot toward AI-optimized chips and foundry services. The company recently announced strategic partnerships with cloud and enterprise customers, aiming to position its next-generation processors as cost-effective AI alternatives to Nvidia’s high-end GPUs.

Despite these advances, Intel’s foundry unit remains under pressure, with margins weighed down by heavy investments and delays in advanced node development. Gelsinger reaffirmed his commitment to building a globally competitive foundry business, emphasizing that near-term challenges will pave the way for long-term scale.

“The next phase of Intel’s journey is about leadership in manufacturing — in the U.S., Europe, and beyond,” he said. “We’re building the foundation for sustained growth in the AI era.”

Market Reaction and Analyst Takeaways

Following the earnings release, Intel’s stock jumped nearly 10% in premarket trading and closed the session with one of its strongest single-day performances of 2025. Analysts described the results as a “turning point” that suggests Intel’s turnaround plan is gaining traction.

However, they cautioned that competition remains fierce, particularly in the data center segment, where Nvidia continues to dominate AI chip sales. Analysts from Morgan Stanley noted that “Intel’s recovery is credible but fragile — execution will determine whether this momentum is sustainable.”

Execution Remains the Key

Intel guided fourth-quarter revenue between $12.8 billion and $13.8 billion, signaling a more moderate finish to the year. Still, the upbeat third-quarter results indicate that the company is stabilizing after years of underperformance and missed product cycles.

For investors, Intel’s comeback story is no longer just about cost cutting — it’s about proving that the company can compete in an AI-driven future.
If Gelsinger’s strategy continues to deliver operational improvements and product momentum, Intel could reemerge as a credible challenger in the global semiconductor landscape — one built on execution, not promises.