Investing.com — Intel Corp on Thursday reported quarterly results that topped Wall Street expectations, helped by U.S. government funding and new investments from Nvidia and SoftBank, as the chipmaker works to regain its footing in the semiconductor industry.
The company posted third-quarter adjusted earnings of 23 cents a share, above analysts’ estimate of 1 cent. Revenue rose 3% to $13.7 billion, also ahead of expectations.
Intel sees fourth-quarter revenue between $12.8 billion and $13.8 billion and adjusted earnings of 8 cents a share, both of which are roughly in line with consensus.
Shares rose about 6% in extended trading. Uts shares have climbed about 64% since the last earnings report, outpacing the broader market and semiconductor sector.
The company is in turnaround mode after years of manufacturing delays and market share losses to rivals such as AMD and Nvidia.
The company has received $5.7 billion in U.S. government funding during the quarter as part of an $8.9 billion package aimed at bolstering domestic chip production.
Nvidia and SoftBank together invested $7 billion in Intel stock, which Chief Financial Officer David Zinsner said improves operational flexibility and reflects confidence in the company’s role in the chip ecosystem.
Intel also completed the sale of a 51% stake in its programmable chip unit Altera, adding $5.2 billion to cash reserves, and said demand across core markets is outpacing supply.
Chief Executive Lip-Bu Tan said artificial intelligence is driving new demand for computing and creating opportunities in Intel’s x86 processors, custom accelerators and foundry services.
The results follow deep cost cuts that have shrunk Intel’s workforce by more than 20% since last year.
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