ETFs in Spotlight as Intel Beats Q3 Earnings on Lower Restructuring Costs

Core Insights - Intel Corp. reported better-than-expected third-quarter 2025 earnings and revenues, leading to a 6% increase in shares during extended trading [1] - The company demonstrated strong gross margin growth and effective cost discipline, resulting in lower operating expenses [1] Financial Performance - Adjusted earnings were 23 cents per share, exceeding the Zacks Consensus Estimate of 22 cents and improving from a loss of 46 cents in the same quarter last year [4] - Revenues reached $13.65 billion, surpassing the consensus estimate by 4.1% and increasing by 3% year over year [4] - Adjusted gross margin improved by 2,200 basis points to 40%, driven by a 25.2% reduction in cost of sales [6] - Operating expenses decreased by 59% year over year, primarily due to a significant drop in restructuring charges [6] - The company reported adjusted free cash flow of $896 million and cash flow from operating activities of $5.41 billion [6] Segment Performance - Client Computing Group (CCG) revenues increased by 4.6% year over year, while Datacenter and AI Group (DCAI) revenues fell by 0.6% [5] - Intel Foundry revenues decreased by 2.4% [5] Strategic Developments - Intel secured approximately $20 billion in cash through major deals, including a collaboration with NVIDIA to develop custom data center and PC products [7] - NVIDIA agreed to invest $5 billion in Intel's common stock, expected to be completed by the end of 2025 [7] - The U.S. government invested $5.7 billion in Intel to support semiconductor manufacturing and advanced packaging projects [8] ETF Exposure - Several ETFs with significant exposure to Intel include: - First Trust NASDAQ Semiconductor ETF (FTXL) with net assets of $343.1 million, Intel accounts for 9.95% [10] - REX FANG & Innovation Equity Premium Income ETF (FEPI) with assets of $572.9 million, Intel accounts for 6.76% [11] - iShares MSCI USA Value Factor ETF (VLUE) with net assets of $8.4 billion, Intel accounts for 6.19% [12] - YieldMax AI & Tech Portfolio Option Income ETF (GPTY) with assets of $76.6 million, Intel accounts for 6.54% [13]