Is Intel Back? 3 Reasons to Take Intel's Turnaround Seriously.

Core Viewpoint - Intel's recent Q3 results and guidance for Q4 suggest a potential turnaround, despite challenges in the semiconductor market, particularly in the AI sector, indicating optimism for 2025 [1][2]. Group 1: Q3 Results and Guidance - Intel reported Q3 revenue of $3.3 billion, a 6% decline year-over-year, but above analyst expectations of $3.0 billion, and an increase from $12.9 billion in Q2 [4]. - Adjusted earnings per share (EPS) were $0.17, significantly better than the anticipated loss of $0.03 per share [4]. - Q4 revenue guidance is projected between $13.3 billion and $14.3 billion, with positive adjusted EPS of $0.12, exceeding estimates [5]. Group 2: Product Performance and Profitability - Intel's newer products, particularly the Lunar Lake chip for notebooks, have shown success, with notebook sales increasing by 9.1% quarter-over-quarter [7][8]. - The operating profit for the Client segment rose by 9% despite a slight revenue decline, indicating improved profitability from newer technologies [8]. - The data center business saw a 9.9% increase in revenue and a 25.7% rise in operating profit compared to Q2, driven by new Xeon 6 server products [9]. Group 3: Future Prospects and Technology Development - Intel's 18A node is on track for mass production in mid-2025, with Amazon as a customer for custom Xeon processors [10][11]. - The company is reportedly making significant progress in next-generation technologies, which could position it favorably against competitors like TSMC [11][12]. - Despite some setbacks, such as lower-than-expected uptake of Gaudi 3 accelerator chips, the overall outlook remains positive with technology and profit improvements being key highlights [13][14].