Intel earlier announced itsFiscal Year 2025 Third Quarter Financial ReportUnder the leadership of new CEO Lip-Mo Chen, the company finally ended six consecutive quarters of losses and achieved its first quarterly profit since the fourth quarter of 2023. However, this turnaround from loss to profit was mainly due to non-operating income rather than a significant recovery in its core business.
According to the financial report, Intel's third-quarter revenue was US$137 billion, a 3% increase over the same period last year.
• Client Computing Group (CCG) revenue was $85 billion, a 5% increase compared to the same period last year.
• Data Center and AI Group (DCAI) revenue was $41 billion, down 1% from the same period last year.
• Intel Foundry (wafer foundry) revenue was $42 billion, a 2% decrease from the same period last year.
Intel's net income in the last quarter was $42.7 billion, with earnings per share of $0.9. However, in the same period last year, Intel suffered a loss of $166 billion due to the recognition of huge impairment losses.
Key to profitability: Selling Altera stake nets $36.7 billion
It is worth noting that Intel's operating income in the third quarter was only $680 million. The net profit of $42.7 billion this time was mainly due to theAltera A one-time gain of US$36.7 billion was realized from the transfer of a 51% stake in the former programmable logic device business to Silver Lake.
New CEO actively seeks funding: US government, NVIDIA, and Softbank inject capital
In addition to improving its financial position through asset sales, Intel's new CEO, Lip-Mo Chen, has also actively sought external funding since taking office. The company's financial report revealed that it received $57 billion in funding from the US government's Chip Act in the third quarter.
In addition, there have been frequent external investment news recently, including Japan's Softbank's announcement of investment$20 millionThe US government has$89 millionPurchase of Intel common stock, totaling 9.9% of the shares, and NVIDIA's unprecedented investment$50 millionThe acquisition of a stake in Intel and the announcement that the two companies will jointly develop data center and PC products have provided a boost to Intel's transformation plans. One source indicated that Lip-Wu Tan has successfully raised $200 billion for Intel in recent months.
Actively "slimming down": nearly 4 employees were laid off within a year, with the goal of reducing the number to 7.5 by the end of the year
While seeking funding, Intel also continues a large-scale staff reduction plan to reduce operating costs.
The financial report shows that as of the end of the third quarter, Intel's global employee headcount had dropped to 88,400, significantly lower than the 101,400 in the previous quarter and 124,100 in the same period last year. This means that over the past year or so, Intel's employee headcount has decreased by nearly 35,000 to 40,000, and the company's goal is to further reduce its total employee headcount to around 75,000 by the end of this year.
Technology Return: 18A mass production and 14A progressing smoothly
Despite operational challenges, Intel appears to be getting back on track with its core technology and process. The gradual ramp-up of the 18A process is seen as a key indicator of Intel's successful counterattack in advanced processes, and progress on the next-generation 14A process is also reportedly progressing relatively smoothly.
The return of technology, coupled with financial and personnel restructuring, has rekindled the market's hope for Intel's successful transformation.
