Intel CEO on Q3 earnings: Results reflect improved execution, steady progress

Core Insights - Intel reported an adjusted profit of 23 cents and revenues of $13.65 billion, exceeding expectations despite some accounting changes [1] - The company is experiencing a supply crunch due to a faster-than-anticipated data center refresh, which may lead to supply shortages in Q1, Q2, and possibly Q3 [2] - Intel is strengthening its cash position, potentially reaching about $35 billion, aided by a US government cash injection and the sale of a 51% stake in Altera [3] Financial Performance - Intel's adjusted profit was 23 cents per share, with revenues of $13.65 billion, indicating a positive performance in product segments but a miss in the foundry business [1] - The stock price has nearly doubled since January 1st, currently trading above $40 [1] Supply Chain and Demand - The data center refresh is occurring faster than expected, leading to a supply shortage that Intel anticipates will affect Q1 through Q3 [2] - The company is managing demand with existing inventory but will struggle to meet future demand due to supply constraints [2] Cash Position and Investments - Intel is bolstering its cash reserves, with potential cash reaching $35 billion from various sources, including government support and the sale of its stake in Altera [3] - The company has not yet received payment from Nvidia for their deal, which will further enhance cash reserves once completed [3] Government Relations - The US government has become Intel's largest shareholder, but Intel's CFO stated that they do not pre-brief the government on financial numbers [5] - Intel is in regular communication with the government as with any major shareholder [5] Future Outlook - Intel is making progress with advanced chip processes but will not increase supply until there is firm demand [5] - Further guidance on future performance is expected to be provided in an upcoming call [6]