Intel (NASDAQ: INTC) shares surged after the semiconductor giant posted stronger-than-expected Q3 earnings, signaling a major turnaround fueled by booming AI chip demand.
The company’s latest results mark its first earnings report since the U.S. government became a top shareholder, following significant investments in domestic chip manufacturing.
According to the report, Intel’s revenue exceeded analyst forecasts, driven by robust demand in its data center and AI divisions.
The company’s aggressive push into artificial intelligence processors is beginning to pay off as enterprises and cloud providers rush to secure hardware for next-generation AI workloads.
Wall Street responded positively, with Intel stock jumping over 8% in early trading. Analysts noted that this earnings beat reflects Intel’s growing competitiveness in the AI chip market, positioning it as a strong rival to Nvidia and AMD.
“The momentum we’re seeing underscores Intel’s strategic realignment toward AI and foundry services,” said CEO Pat Gelsinger during the earnings call.
“We’re committed to rebuilding U.S. leadership in semiconductor manufacturing.”
This quarter also marked the first financial results since the U.S. government’s investment through the CHIPS and Science Act, which aims to strengthen domestic chip production and reduce reliance on overseas suppliers.
Intel’s new partnerships and capacity expansions in Arizona and Ohio are expected to enhance its production scale.
Looking ahead, Intel projects steady growth into 2026 as AI-driven demand and U.S. manufacturing incentives continue to bolster the company’s recovery trajectory.
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