Intel Corporation has posted stronger-than-expected results for the third quarter of 2025, driven by surging global demand for artificial intelligence (AI) computing. The chipmaker reported $13.7 billion in revenue, marking a 3 percent year-over-year increase as it continues its strategic transformation toward AI-focused innovation.
Intel CEO Lip-Bu Tan said the results highlight “improved execution and steady progress” across the company’s core businesses, noting that AI is now a defining factor in global compute demand.
“AI is reshaping every aspect of computing and creating opportunities across Intel’s product portfolio — from x86 processors to custom ASICs, accelerators, and foundry services,” Tan said.
New AI Hardware and Strategic Collaborations
Intel showcased major advances in its AI hardware lineup, unveiling the Intel Core Ultra series 3 (“Panther Lake”) processors for next-generation PCs and previewing Intel Xeon 6+ (“Clearwater Forest”) server chips built on the Intel 18A process. Both products promise substantial power efficiency and performance improvements for AI-driven workloads.
The company also announced a new strategic collaboration with NVIDIA, integrating Intel’s CPUs and x86 ecosystem with NVIDIA’s AI and accelerated-computing platforms via NVLink technology. The partnership is expected to enhance interoperability across AI systems and accelerate innovation in data centers.
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In a further sign of confidence, NVIDIA and SoftBank Group jointly invested $7 billion in Intel’s stock, bolstering its manufacturing expansion and AI roadmap.
Profitability and Government Support
Intel’s profitability saw a sharp rebound, with gross margins rising to 38.2 percent (GAAP) — a 23-point increase year-over-year. The improvement reflects cost controls, stronger pricing, and heightened AI-related demand.
The company generated $2.5 billion in cash from operations during the quarter and forecast Q4 2025 revenue between $12.8 billion and $13.8 billion.
Intel CFO David Zinsner said the ongoing surge in AI computing demand continues to exceed supply, a trend that will likely persist into 2026.
He also cited $8.9 billion in new U.S. government funding, including $5.7 billion disbursed in Q3, to strengthen Intel’s domestic manufacturing base under the CHIPS and Science Act.
AI at the Heart of Intel’s Future
With AI now central to its product strategy and foundry roadmap, Intel is positioning itself to reclaim technology leadership and drive growth across multiple segments — from cloud and enterprise data centers to PCs and edge devices.
“As the AI era accelerates, Intel’s ability to deliver powerful, efficient compute across platforms puts us at the forefront of global innovation,” Tan concluded.
The company’s performance signals a broader rebound for U.S. semiconductor manufacturing and reaffirms Intel’s role as a key player in powering the world’s AI-driven digital transformation.
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