Intel reported third-quarter 2025 revenue of $13.7 billion, up 3% year over year, marking its fourth straight quarter of improved execution under CEO Lip-Bu Tan. The company posted GAAP net income of $4.1 billion ($0.90 per share) and non-GAAP earnings of $0.23 per share. Intel strengthened its balance sheet with $20 billion in new funding, including $8.9 billion from the U.S. Government under the CHIPS Act, a $5 billion equity investment from NVIDIA, and $2 billion from SoftBank Group. The quarter also included the completion of the Altera stake sale and the full activation of Fab 52 in Arizona for Intel 18A wafer production.
Intel’s Data Center and AI (DCAI) group posted $4.1 billion in revenue, down 1% year over year but up 5% sequentially, driven by demand for Xeon 6 processors and rising CPU orders supporting AI server and storage deployments. CEO Lip-Bu Tan emphasized Intel’s plan to “rebuild its market position” in AI compute through revitalized x86 architecture, new inference-optimized GPUs (“Crescent Island”), and an expanded ASIC design services business. The newly established Central Engineering Group will consolidate architecture and IP development across business units to accelerate time-to-market for both x86 and custom silicon. Meanwhile, Intel Foundry reported $4.2 billion in revenue, down 2% year over year, with 18A yields tracking expectations and early customer engagement on the 14A node.
Intel and NVIDIA announced a strategic collaboration to co-develop multi-generation AI data center and PC products integrating Intel CPUs with NVIDIA’s NVLink interconnect. The company also advanced its Panther Lake CPU roadmap, unveiled the Clearwater Forest server architecture, and began shipping its next-generation Lunar Lake and Arrow Lake client processors. CFO David Zinsner noted that AI adoption is “reinforcing momentum across all Intel businesses,” with server CPU demand outpacing supply into 2026. Intel forecasts Q4 2025 revenue between $12.8 and $13.8 billion and expects continued supply tightness for both data center and client products.
- Q3 revenue: $13.7B (+3% YoY); GAAP EPS: $0.90; non-GAAP EPS: $0.23
- DCAI revenue: $4.1B (down 1% YoY; up 5% QoQ)
- Intel Foundry revenue: $4.2B (down 2% YoY)
- U.S. Government funding: $5.7B received; $8.9B total committed
- NVIDIA investment: $5.0B in Intel stock; joint CPU–NVLink AI platforms in development
- SoftBank investment: $2.0B
- Fab 52 (Arizona) now fully operational for Intel 18A
- Cash and short-term investments: $30.9B at quarter end
- Q4 outlook: $12.8B–$13.8B revenue; non-GAAP EPS $0.08
“We are still in the early stages of the AI revolution, and I believe Intel can and will play a much more significant role as we transform the company,” said Intel CEO Lip-Bu Tan.
🌐 Analysis: Intel’s Q3 results highlight a fragile but credible turnaround as AI demand begins to lift both its client and server CPU franchises. The partnership with NVIDIA marks a significant strategic alignment, positioning Intel CPUs within hybrid AI architectures dominated by GPU clusters. Progress in 18A manufacturing and the Foundry business, coupled with strong U.S. government and private backing, gives Intel new financial flexibility to compete with TSMC and Samsung in advanced process nodes.
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