UNITED STATES, 23 October 2025 – Intel Corporation (NASDAQ: INTC) reported stronger-than-expected third-quarter earnings, marking a significant turnaround driven by aggressive cost-cutting measures and fresh strategic investments from Nvidia, SoftBank, and the U.S. government.
The Santa Clara-based chipmaker posted an adjusted profit of 23 cents per share, surpassing analysts’ expectations of 1 cent, according to LSEG data. Adjusted gross margins rose to 40%, ahead of the 35.7% estimate. Shares of Intel surged 7% in after-hours trading following the announcement.
This was Intel’s first earnings release since the multibillion-dollar capital injections from global investors, a much-needed boost for the company that has faced mounting challenges in both the PC and data center processor markets.
$15 Billion in Strategic Funding
Intel received $2 billion from Japan’s SoftBank during the third quarter and is set to receive $5 billion from Nvidia, which will give the AI chip giant a 4% stake once new shares are issued. In addition, the U.S. Treasury Department secured a 10% stake in Intel for $8.9 billion, as part of a broader technology stabilization initiative following a Washington meeting with President Donald Trump and CEO Lip-Bu Tan.
The combined $15 billion in strategic funding is expected to act as a financial lifeline, allowing Intel to strengthen its balance sheet while scaling down its prior capital-intensive manufacturing ambitions.
“Shares popped after-hours based on better-than-feared guidance ex-Altera, visible cost and gross margin progress, AI-PC buzz, and $15 billion of fresh strategic funding that shores the balance sheet,” said Michael Schulman, Chief Investment Officer at Running Point Capital.
Intel’s CFO Dave Zinsner confirmed that the company has received the SoftBank funding but not yet Nvidia’s cash.
Cost Discipline and Restructuring Efforts
CEO Lip-Bu Tan, who took over earlier this year, has embarked on sweeping restructuring efforts, cutting headcount by more than 20% and divesting non-core businesses. Among these moves was the sale of a 51% stake in Altera, its programmable chip unit, to Silver Lake Partners in September — a strategic step toward focusing resources on next-generation chip design.
Tan said on an investor call that a new central engineering group would streamline Intel’s internal design efforts while expanding its custom chip services for external clients — putting Intel in direct competition with Broadcom and Marvell Technologies, both of which help firms like Google and Amazon develop AI chips.
“We’re under-shipping demand at this point, which I guess is a high-class problem,” CFO Zinsner said, adding that demand for Intel’s server and CPU products remains strong as data center operators upgrade systems to complement AI infrastructure.
However, Zinsner also cautioned that yields for Intel’s 18A manufacturing process “are not where we need them to be,” with the company expecting to reach industry-acceptable levels by 2027.
Market Outlook
Intel expects fourth-quarter revenue between $12.8 billion and $13.8 billion, with a midpoint forecast of $13.3 billion, roughly in line with market consensus. Capital expenditure for 2025 is projected at $27 billion, up from $17 billion in 2024.
Following a steep 60% share price drop in 2024, Intel’s stock has rebounded nearly 90% in 2025, outperforming Nvidia as investors gain confidence in Tan’s disciplined financial strategy and new strategic partnerships.
“We will focus on operational excellence, cost efficiency, and innovation in areas where Intel can lead,” Tan told investors, calling the turnaround a foundation for the company’s long-term competitiveness.
