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<p class="has-drop-cap">Intel (NASDAQ: $INTC) <a aria-label="reported third-quarter financial results (opens in a new tab)" href="https://www.intc.com/news-events/press-releases/detail/1655/intel-reports-third-quarter-2023-financial-results" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">reported third-quarter financial results</a> on Thursday, topping the consensus projections on top and bottom lines. One of the highlights of the reports was <a href="https://tokenist.com/intels-shares-up-42-ytd-as-foundry-plans-spark-optimism/" rel="noopener noreferrer nofollow" class="deco-link">Foundry Services</a>, the chipmaker’s smaller business unit focused on in-house chip manufacturing. This division registered 300% revenue growth from last year and agreed deals with three major customers.&nbsp;</p>
<h3 id="intel-s-q3-eps-and-revenue-beat-estimates">Intel’s Q3 EPS and Revenue Beat Estimates</h3>
<p>Intel’s stock soared more than 11% at the opening bell on Friday after the chipmaker reported better-than-expected profit and revenues for Q3 2023. The company’s shares stood at $36.13 at the time of writing.</p>
<p>According to the report, Intel generated 41 cents in adjusted earnings per share (EPS) in Q3, smashing the consensus estimates of 22 cents. Net income stood at $297 million in the three-month period, or 7 cents per share, down from $1.02 billion, or 25 cents per share reported in the year-ago quarter.</p>
<p>Revenue came in at $14.16 billion, down 8% year-over-year (YoY), though better than analysts’ estimates of $13.53 billion. This was the seventh consecutive quarter of declining sales for Intel, although the company expects revenue to grow again in the current quarter.&nbsp;</p>
<p>Intel posted a Q3 gross margin of 45.8%, roughly unchanged from last year.</p>
<p>Per segment, Intel’s Client Computing group, which accounts for laptop and PC processor shipments, saw its sales decline 3% YoY to $7.9 billion. Meanwhile, sales at the Data Center and AI unit plummeted 10% to $3.8 billion amid <a href="https://tokenist.com/amd-shares-climb-after-new-flagship-gpu-launch/" rel="noopener noreferrer nofollow" class="deco-link">increased competition</a> and a smaller overall market for server processors.</p>
<p>On the other hand, Intel’s subsidiary for self-driving car parts, Mobileye, was one of the bright spots of the report, with its sales expanding by 18% to $530 million.&nbsp;</p>
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<h3 id="intel-s-foundry-services-sees-300-in-revenue-growth-as-chipmaker-focuses-on-in-house-manufacturing">Intel’s Foundry Services Sees 300% in Revenue Growth as Chipmaker Focuses on In-House Manufacturing</h3>
<p>Remarkably, it was Intel’s <a aria-label="Foundry Services (opens in a new tab)" href="https://www.intel.com/content/www/us/en/foundry/overview.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Foundry Services</a> unit that caught the eye. As the chipmaker’s in-house chip-manufacturing business, Foundry raked in $311 million in revenue in Q3, representing a YoY increase of almost 300%.&nbsp;</p>
<p>Intel CEO Pat Gelsinger said the growth was partly due to “agreements with new foundry customers,” with one of them making a prepayment during the quarter. The chipmaker has focused more on Foundry Services lately as part of Gelsinger’s strategy to turn around the company’s business after <a href="https://tokenist.com/can-intel-still-be-considered-a-value-stock/" rel="noopener noreferrer nofollow" class="deco-link">facing numerous headwinds</a>. The end goal of this venture is to provide other chipmakers with a domestic alternative to manufacturing giants such as Taiwan Semiconductor (TSMC).</p>
<p>Intel’s CFO David Zinsner said that Intel agreed to deals with three customers for its 18A process node without revealing their names. The sophisticated 18A chip’s manufacturing process is <a aria-label="expected to be industry-leading (opens in a new tab)" href="https://www.business-standard.com/technology/tech-news/intel-plans-for-1-8nm-chips-by-2025-to-challenge-samsung-tsmc-dominance-123090600384_1.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">expected to be industry-leading</a> in terms of performance in 2025, the company said.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Do you think Intel could become one of the leading chip manufacturers and compete with the likes of TSMC in the future? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/intels-q3-earnings-show-chipmakers-turnaround-plans-are-working/">Intel’s Q3 Earnings Show Chipmaker’s Turnaround Plans Are Working</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Intel’s Q3 Earnings Show Chipmaker’s Turnaround Plans Are Working

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