Intel Corp's (NASDAQ:INTC, ETR:INL) stock rose 5% in after-hours trading after posting stronger-than-expected third-quarter earnings and revenue, despite challenges in artificial intelligence and restructuring costs.
Intel reported 17 cents earnings per share, surpassing analysts’ estimates of a two-cent loss, and achieved $13.28 billion in revenue, slightly ahead of forecasts.
The quarter’s net loss of $16.99 billion was attributed mainly to $2.8 billion in restructuring costs and $15.9 billion in write-offs related to Intel's processor technology and divestitures.
Intel's data centre and AI unit saw a 9% revenue increase to $3.35 billion, though its Gaudi AI chips fell short of expectations.
CEO Pat Gelsinger emphasised Intel’s ongoing transformation, including cost-cutting and workforce reductions.
He expressed frustration over delays in promised US government funding.
Intel projected fourth-quarter earnings of 12 cents per share on revenue between $13.3 billion and $14.3 billion, exceeding Wall Street expectations, even as the company navigates a complex turnaround strategy.
The shares were marked $1.11 higher to $22.63, valuing the business at $92 billion.