Intel Returns To Profitability, Foundry Risks Persist

Intel returned to profitability in Q3, reporting about $13.7 billion in revenue and adjusted EPS of $0.23 — its first quarterly profit since late 2023 — as management said stronger PC demand and AI-driven opportunities left demand outpacing supply. CEO Lip‑Bu Tan and CFO Dave Zinsner guided Q4 revenue to roughly $13.3 billion while warning that challenges remain. The quarter was supported by unconventional financing — a roughly 10% U.S. government stake plus investments from Nvidia and SoftBank and proceeds from Altera/Mobileye transactions — that materially boosted cash but included sizeable one‑time gains. Intel’s foundry business remains loss‑making, has not yet landed a major external customer, and will require heavy, disciplined capex amid yield challenges, leaving analysts cautious and divided. Shares jumped sharply on the results and management emphasized continued investment in U.S. manufacturing and alignment with the administration’s semiconductor goals.