Intel Stock Soars 12% After Earnings Beat, AI Demand Fuels Surge

UPDATE: Intel shares have surged more than 12% following a blockbuster earnings report that exceeded expectations. The stock, which closed at $38 per share, skyrocketed to $41.37 in after-hours trading, marking the highest share price since March 2024.

The surge follows a 10% increase in after-hours trading after Intel reported earnings that beat analyst projections significantly. The company’s gross margins soared to 38.2%, up from 18%, a clear indicator of improved operational efficiency. This comes as Intel forecasts fourth-quarter 2025 revenue between $12.8 billion and $13.8 billion, despite anticipating a GAAP loss.

In a compelling commentary, Intel’s CEO Lip-Bu Tan stated, “Our Q3 results reflect improved execution and steady progress against our strategic priorities.” He emphasized that the demand for AI is driving a shift in consumer needs, creating significant opportunities for Intel. “AI is accelerating demand for compute and creating attractive opportunities across our portfolio,” Tan added, highlighting the company’s focus on core products and new ventures in purpose-built ASICs and accelerators.

The announcement comes at a pivotal moment as Intel gains traction in the competitive chip industry, especially with the backing of the U.S. government. The firm has transformed into a key player in the AI and semiconductor landscape, capturing attention when Nvidia’s CEO Jensen Huang acknowledged Intel’s capability to produce top-tier chips for the first time.

The recent rally in Intel’s stock price is also fueled by the perception that the U.S. government is strategically supporting the company in its quest to emerge as a leading foundry in the chip market. Since hitting a low of $18.97 in August, shares have rebounded impressively, reflecting growing investor confidence.

As demand for chips surges, industry experts are closely watching Intel’s path forward. With ongoing investments in research and development and a commitment to innovation, Intel is positioning itself to lead in the rapidly evolving tech landscape.

Investors now await further insights from Intel as the company navigates the challenges ahead, particularly in maximizing production to meet the escalating demand for AI technologies. The next few quarters will be critical as Intel seeks to leverage its advantages and solidify its market position.

Stay tuned for more updates as this story develops.