Intel Reports Q3 Profit Driven by AI Demand and Cost Cuts

Intel reported a strong third quarter in 2025, swinging back to a net income of $4.1 billion on revenues of $13.7 billion, marking a 3% year-over-year increase and surpassing Wall Street expectations. The company benefited from accelerating AI demand, which boosted its core x86 platforms and attracted substantial investments from the U.S. government, Nvidia, and SoftBank, including a $8.9 billion government stake and billions from private investors. Its Client Computing Group saw a 5% revenue gain due to stronger-than-expected PC chip demand, while Data Center and AI revenues slightly declined. Despite these gains, Intel's Foundry business saw a 2% revenue drop and has yet to secure major external customers, raising concerns about its long-term competitiveness against rivals like AMD and Nvidia. CEO Lip-Bu Tan's strategy of cost-cutting combined with external investments appears to be restoring confidence, as reflected in Intel's rising stock price and optimistic revenue guidance for the next quarter. Nonetheless, analysts caution that Intel still faces significant challenges in the fast-evolving AI and server markets, with some questioning its AI accelerator capabilities and factory expansion plans.