Intel Stock Surges as Chipmaker Touts ‘Solid Progress’ on Its Turnaround Plan

Key Takeaways

• Intel reported third-quarter revenue that topped analysts' expectations, sending shares higher after the bell Thursday despite widening losses.
• CEO Pat Gelsinger said the results "underscore the solid progress" Intel is making in its turnaround plan. 
• Intel shares took a hit in recent months amid concerns about its ability to engineer a comeback.

Intel (INTC) reported third-quarter revenue that topped analysts' expectations, sending shares higher after the bell Thursday despite widening losses.

The chipmaker's third-quarter revenue fell 6% year-over-year to $13.3 billion, above the $13.03 billion consensus estimate of analysts compiled by Visible Alpha. Growth in its Data Center and AI segment helped, along with rising sales in its Network and Edge segment.

However, Intel posted a wider-than-expected loss of $16.6 billion, thanks to billions of dollars in restructuring and impairment charges, after reporting a $1.61 billion loss in the second quarter. A year ago, the chipmaker had delivered a profit of around $300 million. 

CEO Calls Charges 'Necessary To Right Size the Company'

CEO Pat Gelsinger said the results "underscore the solid progress" Intel is making in its turnaround plan, calling the charges "significant and necessary to right size the company."

Intel said it anticipates fourth-quarter revenue of $13.3 billion to $14.3 billion, with the midpoint of that range above the consensus estimate of $13.66 billion. It projects a loss of 24 cents per share, steeper than the loss of 12 cents per share analysts had been expecting. 

'We Have a Lot of Work in Front of Us'

Still, Gelsinger told investors, “we have a lot of work in front of us,” as the storied chipmaker tries to revamp the business. Shares took a hit in recent months as worries mounted about its ability to engineer a comeback after reporting wider-than-expected losses in the prior quarter and announcing massive layoffs.

Intel shares surged over 7% in extended trading following the earnings call. They were down more than 57% for the year through Thursday's close, making it one of the worst-performing S&P 500 stocks of the year.

UPDATE—Oct. 31, 2024: This article has been updated to reflect additional information from Intel's earnings call and more recent share price values.

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