With an Intel recovery underway, all eyes turn to its foundry business

Core Insights - Intel's third-quarter earnings exceeded Wall Street expectations, driven by increased revenue and significant cost-cutting measures [1][2] - The company reported a net income of $4.1 billion, a notable recovery from previous quarterly losses [2][6] Financial Performance - Intel's quarterly revenue rose by $800 million to $13.7 billion, compared to $12.9 billion in the previous year [6] - The net income of $4.1 billion marks a significant turnaround from a loss of $16.6 billion in the same quarter last year [6] Strategic Investments - Intel added $20 billion to its balance sheet in the third quarter, largely due to three major investments [3] - Notable investments include $2 billion from SoftBank, a 10% equity stake from the U.S. government, and a $5 billion stake from Nvidia [4][5] - The company has received $5.7 billion of the planned $8.9 billion from the U.S. government [4] Operational Changes - CEO Lip-Bu Tan emphasized that the actions taken to strengthen the balance sheet provide greater operational flexibility [5] - The company also generated $5.2 billion from the sale of its stake in Altera and divested its stake in Mobileye [5] Foundry Business Focus - Despite the positive financial results, details regarding the future of Intel's foundry business remain limited [7] - The foundry business has faced challenges and has been a focus area for CEO Tan, who initiated layoffs in this segment [7] - The U.S. government's investment includes conditions that penalize Intel if it divests from its foundry business in the next five years [8]