Billions in fresh funding, federal government support, and new AI chips mark Intel’s determined comeback, as the US tech giant races to reclaim semiconductor dominance.
Intel’s turnaround efforts advanced in the third quarter, helped by government backing and new investments. The US chipmaker reported stronger earnings while continuing job cuts and operational restructuring.
The company posted revenue of 13.7 billion dollars in Q3, a rise of nearly 3 per cent from a year earlier. Net income jumped 124 per cent to $4.1 billion. Growth was driven by steady demand for PC processors through its Client Computing Group, which delivered 8.5 billion dollars in sales. That marked a 5 per cent year-on-year increase.
Chief Financial Officer David Zinsner said Intel reduced debt by $4.3 billion in the quarter. The company secured 20 billion dollars in cash from government support and deals with new investors. This included proceeds from selling shares in Altera and Mobileye.
Intel is benefiting from large funding commitments from the US administration, SoftBank and Nvidia. Chief Executive Lip-Bu Tan said the company is working closely with Washington to rebuild domestic semiconductor manufacturing capacity.
Performance in other key divisions was mixed. Data centre and AI revenue fell 1 per cent to $ 4.1 billion. Tan said cloud customers are seeking longer-term supply agreements as AI infrastructure expands rapidly. Intel is preparing new processor launches aimed at AI PCs, including its upcoming Panther Lake platform.
Intel’s foundry business remained under pressure but showed progress. The unit recorded revenue of $4.2 billion, down 2 per cent from last year. Tan said the development of the Intel 18A manufacturing process is advancing. The firm launched a new high-volume fabrication plant in Arizona dedicated to this technology.
The CEO said early interest in Intel’s following 14A process is encouraging. He stressed that investments in the foundry unit will be disciplined and tied to confirmed customer demand.
Intel continues to slim its workforce. Core headcount now stands at 83,300, down from 96,400 in June. The company had 115,000 workers at the same time last year. Tan aims to reach 75,000 by year-end.
For the fourth quarter, Intel expects revenue between 12.8 billion dollars and 13.8 billion dollars. It forecasts a loss of 14 cents per share. Tan said the company plans to strengthen its position as demand for AI accelerates.
