"Intel Corp. shares jumped after the chipmaker returned to profitability and gave an upbeat revenue forecast, suggesting that it's making progress on a long and challenging comeback attempt. Fourth-quarter sales will be roughly $13.3 billion, the company said in a statement Thursday. Though that was just below Wall Street's average estimate, some analysts were still including revenue from a unit that Intel just spun off money that wasn't part of the company's forecast."
"The outlook signals that Intel is on the right track following a turbulent year. In the stretch of a few months, new Chief Executive Officer Lip-Bu Tan secured an unconventional investment from the US government a transaction brokered by the White House and won backing from Nvidia Corp. and SoftBank Group Corp. Investors applauded those deals, sending Intel shares up 90% this year. The company went from being one of the worst performers in the Philadelphia Stock Exchange Semiconductor Index to one of the best."
Intel returned to profitability and forecasted roughly $13.3 billion in fourth-quarter sales. Shares rose after results and strategic investments increased market confidence. New CEO Lip-Bu Tan secured an unconventional US government investment handled by the White House and received backing from Nvidia and SoftBank. The US government's stake is valued at about $17.2 billion, roughly an $8.3 billion paper gain, after agreeing to buy 433.3 million shares at $20.47 each. Concerns remain about Intel's ability to win customers with new manufacturing and to capture AI spending. Current PC demand is outpacing supply and is expected to persist into 2026, supporting near-term results.
Read at www.mercurynews.com
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