Intel Reports $4.1B Q3 Profit, Foundry Expansion Gains Microsoft Interest

Intel Corporation reported a strong recovery in its third-quarter earnings for 2023, surpassing Wall Street expectations with a net income of $4.1 billion and revenue growth to $13.7 billion. This turnaround was driven by rigorous cost-cutting measures, including layoffs, and significant investments totaling $20 billion from SoftBank, Nvidia, and the U.S. government, which acquired a 10% equity stake, highlighting Intel's strategic importance as the leading U.S.-based semiconductor company. CEO Lip-Bu Tan emphasized the company's focus on expanding its foundry business, despite its current struggles, as a critical component for long-term growth and national interests. A fresh development suggests Microsoft is preparing to manufacture its next-generation Maia AI chip using Intel's advanced 18A process, which could mark a significant endorsement and a long-term partnership for Intel’s foundry services, especially given the energy efficiency and domestic manufacturing advantages. These investments and partnerships have fortified Intel’s balance sheet and stock performance, fueling optimism about its role in the advancing AI and semiconductor markets. Overall, Intel’s recovery and foundry ambitions are reshaping its industry position and have wide-reaching implications for technology and supply chain strategies in the U.S.