Intel Shares Surge Nearly 10% After Q3 Profit Beat Driven by AI Demand and Cost Cuts

Intel's stock surged nearly 10% in Frankfurt and around 7% in U.S. after-hours trading following its third-quarter 2025 earnings report, which beat expectations thanks to aggressive cost-cutting and increased AI-driven demand. The company reported revenue of $13.65 billion, a 2.8% increase year-over-year, with adjusted EPS of $0.23, significantly surpassing the expected $0.01 and marking a turnaround from a loss in the previous year. CEO Lip-Bu Tan emphasized the growing computing demand driven by AI, highlighting opportunities across Intel's chip manufacturing, including CPUs, AI chips, and foundry services. Despite challenges in its third-party manufacturing division, Intel's strategic investments from Nvidia, SoftBank, and the U.S. government have bolstered its financial position and fueled a nearly 90% stock gain in 2025. Analysts maintain cautious optimism, noting improvements in gross margins and execution against strategic priorities, while Intel forecasts modest fourth-quarter revenue and earnings per share. This strong performance helped Intel's stock approach the $40 mark, reflecting investor confidence in its recovery and AI-related growth prospects.