New Delhi, India, October 23, 2025 – Intel surprised Wall Street by reporting stronger-than-expected profits for Q3 2025. The growth came from aggressive cost-cutting measures and strategic investments. Shares rose 7% in after-hours trading, reflecting renewed investor confidence in the company’s turnaround strategy.
Under CEO Lip-Bu Tan, Intel restructured operations and reduced expenses. The company aims to recover from a tough 2024, when it recorded its first annual loss in nearly four decades. Tan’s plan included asset sales, workforce reductions exceeding 20%, and scaling back manufacturing plans set by former CEO Pat Gelsinger. These measures strengthened operational efficiency while maintaining strategic capabilities.
The financial boost also came from major external investments. Japan’s SoftBank injected $2 billion, providing immediate liquidity. Nvidia pledged $5 billion for a 4% stake once new shares are issued. Additionally, the U.S. government acquired a 10% stake for $8.9 billion after a high-level Washington meeting.
Intel has not yet received Nvidia’s funds. CFO Dave Zinsner confirmed that SoftBank’s investment has already arrived. These injections will help Intel compete in the CPU market, where it faces strong rivalry from AMD. They also support expansion in the AI chip sector, where Nvidia dominates.
Intel’s stock has surged nearly 90% in 2025, outperforming Nvidia. Analysts attribute this rise to improved financial performance, strategic funding, and growing demand for AI-enabled PCs. Michael Schulman, Chief Investment Officer at Running Point Capital, said the stock rose due to better guidance, cost reductions, gross margin improvements, AI-PC buzz, and $15 billion in strategic funding.
The company also sold a 51% stake in Altera to Silver Lake. Altera, a programmable chip designer acquired in 2015, is now part of Intel’s strategy to streamline operations. During an investor call, Tan announced a central engineering group to focus on Intel’s chips and provide custom solutions to clients. This move positions Intel to compete with Broadcom and Marvell Technologies, which already supply AI chips to Google and Amazon.
Zinsner noted strong demand for Intel chips during Q3. Data center operators upgraded CPUs to handle advanced AI workloads. “We are under-shipping demand, which is a high-class problem,” Zinsner said. However, challenges remain. Intel’s 18A manufacturing process is not yet achieving yields needed for strong profit margins. Industry-standard yields may not be reached until 2027.
Despite these issues, Q3 results were solid. Intel posted adjusted gross margins of 40%, beating the 35.7% expectation. Adjusted earnings reached 23 cents per share, far above the anticipated 1 cent.
Looking ahead, Intel projects Q4 revenue between $12.8 billion and $13.8 billion, slightly below analyst expectations. The company plans to increase capital spending to $27 billion in 2025, up from $17 billion in 2024.
Intel’s strategy combines cost control and strategic investments. The company aims to strengthen its market position in CPUs and AI-focused technologies. Its performance signals a potential comeback in the competitive semiconductor landscape. Investors are responding positively, showing renewed confidence in Intel’s turnaround plan.
The company’s focus on operational efficiency, strategic partnerships, and custom chip solutions positions it for long-term growth. Analysts expect that Intel’s balanced approach could stabilize margins and support future innovation. By streamlining operations and leveraging external funding, the company hopes to regain momentum and compete effectively in a rapidly evolving market.
Intel’s Q3 success highlights the impact of disciplined management and strategic funding. The company continues to navigate industry challenges while pursuing opportunities in AI and high-performance computing. Its trajectory demonstrates how targeted actions can rebuild investor confidence and market position in the semiconductor sector.
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