Intel (INTC) Stock: Crushes Earnings as Top Analyst Doubles Price Target

Intel's third-quarter performance defied expectations, with revenue climbing 3% year-over-year to $13.7 billion—$560 million above analyst forecasts. Adjusted earnings per share reached $0.23, a stark contrast to the projected $0.01 and last year's $0.46 loss. The chipmaker's balance sheet strengthened significantly, with cash reserves swelling to $30.9 billion from $22.1 billion while debt fell by $3.4 billion.

The PC market shows signs of recovery, with total addressable market projected to grow from 245 million units in 2024 to 290 million by 2025. Intel's data center segment saw operating margins leap to 23.4% from 9.2% despite flat revenue. Supply constraints on older manufacturing processes persist, but the upcoming Intel 18A node promises to power the next three product generations.

Accounting complexities surrounding U.S. government contracts remain unresolved due to the federal shutdown. The company continues working with SEC regulators to validate its financial reporting methodology.