Intel says demand outpacing supply as delivers strong third quarter

Intel Corp on Thursday said artificial intelligence is "accelerating" demand for compute and creating "attractive opportunities" across its portfolio, as it reported a return to profit and higher sales in the third quarter.

The Santa Clara, California-based chipmaker reported net income of USD4.27 billion in the three months to September swung from a net loss of USD16.99 billion the year prior.

Diluted earnings per share of USD0.90 compared to losses of USD3.88 per share a year ago, while on a non-GAAP basis EPS of USD0.23 beat Visible Alpha consensus for LPS of USD0.13, and last year's USD0.46 losses.

Revenue increased 2.7% to USD13.65 billion from USD13.28 billion the year prior, ahead of Visible Alpha consensus of USD13.1 billion.

Chief Executive Lip-Bu Tan said AI is "accelerating" demand for compute and creating "attractive opportunities across our portfolio, including our core x86 platforms, new efforts in purpose-built ASICs and accelerators, and foundry services."

It has been a transformational quarter for Intel, securing accelerated funding from the US Government, and investments by Nvidia Corp and SoftBank Group.

These have strengthened the balance sheet and increase operational flexibility, observed Chief Financial Officer Zinsner.

The CFO said the stronger than expected third quarter results reflect the "underlying strength of our core markets."

"Current demand is outpacing supply, a trend we expect will persist into 2026," he added.

Looking ahead, Intel forecast fourth quarter revenue of USD12.8 billion to USD13.8 billion, and non-GAAP EPS attributable to Intel of USD0.08.

Intel's guidance excludes Altera, following the sale of a majority ownership interest completed in the third quarter of 2025.