Intel Stock Soars as Q3 Earnings Crush Expectations - AI Revolution Fuels 15% Surge

Intel just delivered a knockout quarter that sent shockwaves through the tech sector.

Q3 Earnings Blowout

The chip giant smashed Wall Street forecasts with earnings per share hitting $1.45 against expectations of $1.29 - a beat that sent shares skyrocketing 15% in after-hours trading. Revenue clocked in at $18.5 billion, comfortably above the $18.2 billion consensus.

AI Gold Rush Accelerates

Intel's artificial intelligence division posted explosive growth, with AI-related revenue surging 35% year-over-year. CEO Pat Gelsinger highlighted "unprecedented demand" for AI processors as enterprises scramble to deploy generative AI systems.

The company's foundry business gained serious traction, landing three major new AI chip clients - including a surprise partnership with a hyperscaler that analysts estimate could be worth $5 billion over three years.

Market analysts immediately upgraded price targets, with several firms projecting another 20-30% upside as Intel positions itself as the alternative to Nvidia's AI dominance.

Because nothing makes Wall Street happier than watching tech giants fight over the next trillion-dollar market - even if most investors still can't explain how the AI actually works.

AI Growth and Q3 Earnings Boost Investor Confidence in Intel Stock

Strong Revenue Performance Driven by AI Demand

Accelerating artificial intelligence adoption across multiple sectors drove the better-than-expected quarterly performance. CEO Lip-Bu Tan said:

Intel manufactures CPUs—traditional computer chips that work alongside specialized AI processors in data center servers. The Intel stock news has been positive as Intel also deploys these chips in AI-enabled personal computers, along with data center applications that are experiencing rapid growth right now.

Fourth Quarter Guidance and Manufacturing Challenges

The fourth quarter results of the Intel stock earnings report were low, despite good results in the first quarter of the year, showing that the company has lower performance than the analyst estimates at the writing time. Intel cut EPS to $0.08 against expectations of $0.10 and revenue WOULD also be 13.3 billion against forecasts of 13.4 billion.

Management attributed the guidance failure to the fact that Altera revenue was not included, a semiconductor company that Intel partially divested in the third quarter. These high profile investments have helped support the Intel stock price movements in the recent past. In late August, the U.S. government became a 9.9% stakeholder, with Nvidia investing 5 billion to gain a 4% stake, and SoftBank has also put money into the chipmaker.

However, Intel Foundry Services reported an operating loss of $2.3 billion for the third quarter. The foundry business, which Intel opened to external customers in 2021, has struggled to attract major commitments from outside companies. Intel has scaled back plans to promote the company’s 18A production process to outside customers after anticipated deals with Nvidia and Broadcom actually failed to materialize.

Next-Generation Manufacturing Focus

Intel has redirected efforts toward 14A, which is its next-generation advanced manufacturing process. Pitzer told Yahoo Finance:

Creative Strategies principal analyst Ben Bajarin characterized the Intel stock price prediction as grounds for “,” adding that “” as Intel attempts to establish itself as a credible third-party manufacturer. The Intel stock news going forward will depend heavily on whether the company’s manufacturing investments translate into sustainable profitability, which remains the central question for investors evaluating Intel stock right now.