Chip Giant Intel's Surprising Q3 Results: A Turning Point?

Intel, a major player in the tech world, had a quarter that surprised everyone. Their shares jumped 9% after hours on Thursday due to better-than-expected revenue. Pat Gelsinger, Intel's CEO, has been facing a tough time with the company's performance, but the latest numbers brought some relief. The chipmaker reported a revenue of $13. 28 billion, which was higher than the expected $13. 02 billion. However, it's not all good news. Intel's revenue dropped by 6% compared to last year's same quarter. The company also faced a net loss of $16. 99 billion, a sharp contrast to the $310 million profit from the previous year. Pat Gelsinger mentioned plans to spin off the foundry business to get external funding.

Intel's Client Computing Group, which deals with PC chips, saw a 7% drop in revenue to $7. 33 billion, slightly below analysts' expectations. On the other hand, the Data Center and AI segment showed growth, reaching $3. 35 billion, a 9% increase. Intel also announced new products, including Xeon 6 server processors and Gaudi AI accelerators. They project adjusted earnings of 12 cents per share and revenue between $13. 3 billion and $14. 3 billion for the next quarter. Some interesting developments include reports of Qualcomm considering a takeover and Intel hiring advisors to counter activist investors. As of Thursday, Intel shares were down 57% for the year, while the S&P 500 index was up 20%. Experts will discuss these results in a conference call starting at 5 p. m. ET. Keep an eye out for updates!

Actions