Tech big Intel’s (INTC) comeback quarter got here in clear on paper.
The chipmaker beat handsomely on each strains, on the again of tighter execution and AI demand that began exhibiting up in laborious numbers.
Margins widened, liquidity surged, and foundry losses narrowed — precisely the type of quarterly exhibiting Wall Avenue had anticipated.
The tone from CEO Lip-Bu Tan was equally deliberate. He ticked via 4 consecutive quarters of sturdy progress, a wholesome $20 billion money increase via partnerships, together with asset gross sales and a extra disciplined capex path.
Nonetheless, then got here the shock.
Tan closed on an uncommon notice, tying Intel’s newfound monetary energy to a partnership that reaches past semiconductors. He wasn’t trying to hedge however regarded to successfully cement a power-packed alliance, suggesting that Intel’s subsequent chapter might unfold on a stage a lot bigger than Silicon Valley.
Lip-Bu Tan hails Washington as an “important companion” throughout Intel’s Q3 earnings name.Picture supply: Annabelle Chih/Bloomberg/Getty Photos
Lip-Bu Tan didn’t simply thank Washington in Intel’s Q3 earnings name, however solid it as an “important companion.”
Tan opened by crediting “accelerated funding from america authorities” as a essential pillar of Intel’s revitalized liquidity place. Then got here the road that turned heads: “I’m honored by the belief and confidence President Trump and Secretary Lutnick has positioned in me.”
That’s unusually specific political framing for a chipmaker’s earnings name.
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He pitched the current landmark take care of the federal government as strategic and never ceremonial. To place it plainly, Intel’s partnership isn’t about subsidies anymore; it’s about anchoring the nation’s chipmaking potential on the bleeding fringe of expertise.
Furthermore, Tan linked coverage to its product roadmap.
Intel 18A is billed because the core platform for the subsequent three generations of consumer and server chips, whereas Fab 52 in Arizona is now totally operational.
Crucially, he additionally talked a couple of defense-grade channel: “I’ll work with U.S. authorities inside the safe enclave and different dedicated prospects.”
It is a direct indication of trusted, on-shore manufacturing that’s prone to feed into national-security demand.
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These developments come on the again of Intel’s bombshell announcement over Washington’s transition from a coverage sponsor to fairness companion earlier within the yr.
The White Home took a 9.9% stake price $8.9 billion at $20.47 per share, because the chipmaker pulled ahead $5.7 billion of CHIPS money to maintain the 18A node transferring.
The deal successfully rests on a sizeable $8.5 billion in grants and $11 billion in loans, together with 30,000 U.S. jobs unfold throughout 4 key states, together with a $3 to $3.5 billion Safe Enclave for protection chips.
Authorities as Co-Pilot: Tan hailed Washington as an “important companion,” brazenly thanking President Trump and Secretary Lutnick for supporting Intel’s comeback.
From Subsidy to Stake: The White Home owns 9.9% of Intel ($8.9 billion at $20.47/share), together with $5.7 billion in pulled-forward CHIPS funds.
Industrial Technique in Movement: The deal features a whopping $8.5 billion in grants, together with $11 billion in loans, and creates 30,000 jobs throughout key states.
Intel’s Q3 2025 earnings print delivered a clear beat.
Its earnings per share got here in at 23 cents, beating consensus estimates by 22 cents, whereas gross sales got here in at $13.65 billion (+2.8% YOY, and $515 million larger than consensus) on stronger execution and AI-led tailwinds.
CEO Lip-Bu Tan hailed Intel’s very good progress, crediting its strong balance-sheet flexibility after elevating nearly $20 billion via partnerships and asset gross sales. This contains $5.7 billion from the U.S. authorities, $2 billion from SoftBank, and an upcoming $5 billion fairness take care of Nvidia closing in This fall.
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Tan sees the Nvidia collaboration as transformational: “We’re becoming a member of forces to create a brand new class of merchandise spanning a number of generations,”linking Intel x86 CPUs to Nvidia NVLink in focusing on AI data-center, enterprise, and PC markets.
Furthermore, the corporate’s gross margin hit 40%, 4 factors over its steering, led by a wholesome combine and decrease reserves. On the similar time, its working money circulation surged to $2.5 billion whereas Foundry losses narrowed to $2.3 billion (enhancing by $847 million within the prior-year interval).
Moreover, the corporate concluded the quarter with complete money and short-term investments of $30.9 billion at quarter-end, enabling Intel to repay $4.3 billion of debt, a serious step in enhancing its steadiness sheet.
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