Intel Corp (NASDAQ:INTC) stock rose 1.32% (As on October 24, 11:16:08 AM UTC-4, Source: Google Finance) after the company reported strong sales growth in its core personal computer chip business and lower costs from layoffs and other cuts implemented over the past year. The struggling chipmaker, which has fallen far behind rivals such as Nvidia Corp. in the artificial intelligence race, reported a strong revenue beat. Intel also reported net income of $4.1 billion, rising from a $16.6 billion loss in the year-ago quarter. During the quarter, INTC continued to implement his aggressive cost-cutting program, reducing the company's employee headcount from 101,400 three months ago to just 88,400. The headcount is now down 29% from a year ago. In the first quarter of 2025, the company made an organizational change to integrate the Network and Edge Group (NEX) into CCG and DCAI and modified Intel's segment reporting to align to this and certain other business reorganizations. Intel received $5.2 billion with the completion of the Altera transaction and a stake sale of Mobileye.
Moreover, Intel and the Trump Administration announced an agreement to support the continued expansion of American technology and manufacturing leadership through $8.9 billion in funding from the U.S. Government. During the quarter, Intel received $5.7 billion from the U.S. Government. Intel and NVIDIA announced a collaboration to jointly develop multiple generations of custom data center and PC products across hyperscale, enterprise and consumer markets. The collaboration will integrate the strengths of Intel's leading CPU technologies and x86 ecosystem with NVIDIA's AI and accelerated computing platforms using NVIDIA NVLink. NVIDIA also agreed to invest $5.0 billion in Intel common stock. SoftBank Group made a $2.0 billion investment in Intel common stock, reflecting its belief that Intel will play a critical role in expanding advanced semiconductor manufacturing and supply in the United States. The company provided a first look at Intel Xeon® 6+ (code-named Clearwater Forest).
INTC in the third quarter of FY25 has reported the adjusted earnings per share of 23 cents, beating the analysts' estimates for the adjusted earnings per share of 22 cents. The company had reported the adjusted revenue growth of 3 percent to $13.7 billion in the third quarter of FY25, beating the analysts' estimates for revenue of $13.14 billion.
Looking to the fourth quarter, Intel called for revenue of between $12.8 billion and $13.8 billion, the midpoint of that range matching Wall Street's consensus estimate of $13.4 billion.