U.S. chipmaker Intel reported on Thursday that its third‑quarter revenue jumped 21 percent year‑on‑year to $16.51 billion, but net income fell 18 percent to $3.32 billion, according to a press release issued by the company.
The company’s earnings per share dropped from $0.9 to $0.60, while gross margin improved from 38.2 percent to 43 percent. Quarter‑end revenue from Intel’s Data Center and AI segment rose 78 percent YoY to $7.3 billion, its strongest data‑center growth in 15 years. Revenue from the Client Computing and Physical AI Group declined 5 percent to $8.1 billion, reflecting continued challenges in the personal computer market. Intel Foundry generated $6.7 billion in revenue, a 58 percent YoY increase, including transactions with other Intel business units.
Intel CEO Lip‑Bu Tan said demand for the company’s central processing units remained robust despite near‑term headwinds in the PC industry, adding that increasing supply to meet demand for Xeon server processors was an immediate priority.
"Demand for the company's central processing units remained robust despite near‑term headwinds in the PC industry," said Tan.
"Increasing supply to meet demand for Xeon server processors was an immediate priority."
For the fourth quarter, Intel projects revenue between $15 billion and $16 billion and a GAAP diluted earnings per share of $0.10, with a non‑GAAP EPS estimate of $0.25. The company also forecasts a 37.1 percent gross margin, down from 43 percent in the third quarter.
