intel ended six consecutive quarters of losses and returned to profitability in the third quarter.
In its first earnings report since the Trump administration took a 10% stake in the company, the U.S. chipmaker posted strong earnings and pointed to strong demand for chips expected to continue into 2026.
Client computing revenue, which includes PC and laptop chips, increased 5% year over year, benefiting from stabilization of the PC market and the outlook for artificial intelligence PCs.
Chief Executive Officer Lipbu Tan said on a conference call with analysts on Thursday that artificial intelligence is “a strong foundation for sustainable long-term growth as we conduct our business.”
While there were positives in chip strength and demand, there were also areas of concern as the company’s foundry business still needs a big break.
Here are three takeaways from the chipmaker’s third-quarter report.
cash flow
“We significantly improved our cash position and liquidity in the third quarter, which has been a key focus since I took over as CEO in March,” Tan said on a conference call with analysts on Thursday.
Intel received an $8.9 billion investment from the U.S. government in August, as well as a $2 billion investment from the U.S. government. Softbankbut has yet to receive the $5 billion tied to the deal with Nvidia. The company expects the transaction to close by the end of the fourth quarter.
With all of these deals completed, plus the sale of Altera, Intel will be left with $35 billion in cash, CFO David Zinser told CNBC.
The U.S. government is the company’s largest shareholder, and Intel shares have risen more than 50% since Aug. 22, when Secretary of Commerce Howard Lutnick announced the deal.
“Like everyone else, we have to stay in touch with our shareholders,” Zinsser said of U.S. stocks. “We don’t tell them what the numbers are quarterly in advance. We usually talk to them like Fidelity,” said another Intel shareholder.
Intel’s 3-month stock price chart.
foundry
The company’s foundry is still under development.
Sales decreased by 2% from the previous year, and the company has not yet gained any major customers.
Intel currently has two fabs running 18A nodes designed for AI and high-performance computing applications.
Regarding the latest chip technology, Tan said, “Intel 18A is making steady progress.” “We plan to bring Panther Lake to market this year.”
Zinsser said the more advanced 14A nodes will not be delivered until the company has “solid demand.”
I still sell old ones
Zinsser said the company’s older chip manufacturing process, or node, continues to perform well, “and that’s probably the part that was more unexpected.”
Zinsser said chipmakers are meeting some of their central processing unit (CPU) demand with inventory on hand, but will be delayed in the first quarter, “probably in the second quarter, and probably in the third quarter.”
The shortage is occurring with older Intel 10 and 7 manufacturing technology.
Many customers are choosing less advanced hardware to modernize their operating systems, showing that companies aren’t waiting around for cutting-edge chips that can get the job done with proven technology.
