Intel Shows Progress but Turnaround Still Uncertain

This article first appeared on GuruFocus.

Intel (INTC, Financials) posted stronger-than-expected third-quarter results, showing signs that its long restructuring is starting to take hold. Revenue and earnings both came in ahead of Wall Street forecasts, helped by cost controls and recent investments from the U.S. government, Nvidia and SoftBank.

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The company said its foundry business is still losing money but remains central to its turnaround plan. Intel is betting on new 18A and 14A manufacturing processes to help it win back ground from rivals and attract new customers later this decade.

Guidance for the fourth quarter calls for a year-over-year decline in sales and margins, underscoring that the rebound remains uneven. Analysts say improved cash flow is encouraging but warn that sustainable growth will depend on successful execution of Intel's foundry strategy beyond 2027.

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