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Intel Posts Q3 Beat as Shares Near Two-Year High After Cash Infusion

Improved data‑center margins paired with a reinforced balance sheet lifted confidence despite unresolved yield issues.

Overview

  • Intel reported $13.7 billion in Q3 revenue and $0.23 adjusted EPS, topping estimates, with gross margin at 40% and a swing to roughly $4.1 billion in GAAP profit.
  • Data center and AI operating margin rose to 23.4% from 9.2% a year earlier on roughly flat revenue, signaling healthier mix and pricing.
  • Cash and short‑term investments climbed to $30.9 billion and total debt fell to $46.6 billion, helped by roughly $15 billion in strategic investments plus proceeds from the Altera stake sale.
  • Management flagged tight supply on Intel 10 and Intel 7 processes and said acceptable yields on 18A are not expected until 2027; Q4 plans prioritize higher‑margin server CPUs over entry‑level PC chips.
  • Shares trade around $38, up about 85–90% year to date, as Intel guides Q4 revenue to $12.8–13.8 billion and about $0.08 EPS, with a projected PC market rebound to roughly 290 million units in 2025.