Intel’s Resurrection Gains Traction Following Q3 Earnings: How to Play INTC Stock Now

Core Insights - Intel has experienced a significant recovery in its stock price, more than doubling this year after a 60% decline last year, largely due to investments from the U.S. government, Softbank, and Nvidia [1][2] - The U.S. government is now Intel's largest shareholder, having acquired nearly a 10% stake in the company [1] Financial Performance - Intel reported Q3 revenues of $13.7 billion, a 3% year-over-year increase, surpassing analyst expectations of $13.14 billion and exceeding its own guidance for the fourth consecutive quarter [4] - The adjusted earnings per share (EPS) for Q3 was $0.23, compared to the guidance of breakeven [4] - Q4 revenue guidance is projected between $12.8 billion and $13.8 billion, slightly below market estimates, with expected adjusted gross margins falling to 36.5% due to an unfavorable product mix and other factors [5] AI Positioning - During the Q3 earnings call, Intel emphasized its role in the artificial intelligence (AI) sector, noting a 5% sequential increase in AI PC revenues [6] - The company highlighted the importance of CPUs in the data center ecosystem, with inference workloads growing faster than training workloads [6] Management Confidence - Intel's management expressed increased confidence in the company's outlook, supported by a strong financial position with over $30 billion in cash and cash equivalents at the end of Q3 [7] - The company repaid $4.3 billion in debt during Q3 and plans to further reduce its debt levels by addressing upcoming maturities in 2026 [7]