Here's how much Trump is up on Intel following its Q3 earnings report

Intel significantly surpassed Q3 earnings expectations, reporting $13.7 billion in revenue, a 3% year-over-year increase, and a net income of $4.1 billion, a substantial turnaround from a $16 billion loss a year prior. This strong performance, which drove an over 8% rise in pre-market trading, was attributed to aggressive cost-cutting measures, robust demand for its x86 processors in the AI sector, and recent multi-billion dollar investments from Nvidia and the U.S. government. While the Intel Foundry Services division still posted an operating loss of $2.3 billion, it marked a significant improvement, with the company projecting Q4 EPS of $0.08 on $13.3 billion in revenue.

Analysis

Intel (INTC) significantly surpassed Q3 market expectations, reporting $13.7 billion in revenue, a 3% year-over-year increase, and a net income of $4.1 billion, a sharp reversal from a $16 billion loss a year prior. Adjusted EPS reached $0.23, compared to a $0.46 loss in the prior year. This strong performance led to an over 8% rise in pre-market trading, with the stock reaching $41.35.

The positive results are attributed to aggressive cost-cutting measures, including a 15% workforce reduction, and robust demand for its x86 processors, particularly within the artificial intelligence (AI) sector. Strategic investments, notably a multi-billion dollar injection from Nvidia and a $9 billion U.S. government grant, also provided significant backing, with the government's equity stake appreciating nearly 67% in two months. CEO Lip-Bu Tan emphasized improved execution and Intel's strong positioning in AI.

Intel's Q4 guidance projects EPS of $0.08 and revenue of $13.3 billion, excluding potential Altera contributions. While the Intel Foundry Services (IFS) division recorded an operating loss of $2.3 billion, it represents a notable improvement from the $5.8 billion loss a year earlier, indicating progress in this segment despite exceeding the $2.2 billion projected loss.

Key Decisions for Investors

• Investors should evaluate Intel's sustained operational improvements and cost efficiencies as key drivers for future profitability.
• Monitor the continued demand for Intel's x86 processors in the AI sector and the strategic impact of recent large-scale investments as potential long-term growth catalysts.
• Assess the Q4 guidance, particularly the performance of the Intel Foundry Services division and the implications of excluding Altera revenue, for insights into near-term financial trajectory.