INTC: Intel Stock Jumps 8% After Strong Earnings Boost Investor Confidence
Intel's stock surged 8% after the company reported better-than-expected third-quarter earnings, with revenue of $13.7 billion surpassing forecasts. The positive outlook is bolstered by resilient PC demand and corporate spending, alongside a recent 10% equity stake from the US government. Nvidia's $5 billion investment further enhances confidence in Intel's turnaround, marking an 85% stock increase in 2025. Analysts expect revenue guidance for the current quarter to align with estimates, indicating a potential recovery for the struggling chipmaker.
Key points:
- Intel shares soar Friday
- Markets bet on good outlook
- Nvidia and US govt backing the effort
Struggling chipmaker posted its first earnings report after the US government grabbed a chunky equity stake a couple of months back.
⚙️ Earnings Beat Sparks Big Rebound
- Intel stock surged 8% pre-market Friday after the company posted better-than-expected third-quarter results. It was a much-awaited update, showing that its long turnaround story might actually be working.
- The chipmaker reported $13.7 billion in revenue, ahead of Wall Street’s $13.2 billion forecast. Adjusted earnings came in at 23 cents per share, obliterating expectations of just 2 cents.
- The strong performance was fueled by resilient PC demand and a rebound in corporate hardware spending, giving Intel some breathing room in its battle against AMD and Nvidia.
📈 Solid Outlook and a Little Government Help
- For the current quarter, Intel guided revenue between $12.8 billion and $13.8 billion, right in line with analysts’ $13.4 billion estimate — a show of confidence for a company that’s struggled with execution and profitability in recent years.
- The upbeat tone follows a dramatic few months for Intel, which saw the US government take a 10% equity stake after converting about $9 billion in federal grants into ownership earlier this year.
- Since then, Intel’s stock has been on an absolute tear — up 85% in 2025 — with most of those gains coming after the government’s announcement in August.
🤝 Nvidia’s $5 Billion Vote of Confidence
- The bullish momentum intensified in September when Nvidia, the world’s most valuable company with a $4.4 trillion market cap, announced a $5 billion investment in Intel.
- The deal underscored growing cooperation across the semiconductor ecosystem, with Nvidia planning to use Intel’s foundries to expand production capacity.
- So if the US government and Nvidia are both betting on Intel… does this mean this underdog story isn’t so far-fetched after all?
