Intel Revenues Up 3 Percent to $13.7 Billion in Q3

Struggling microprocessor giant Intel earned a net income of $4.1 billion on revenues of $13.7 billion in the quarter ending September 30. Intel had reported a net loss of $16.6 billion in the year-ago quarter, and revenues were up 3 percent year-over-year (YOY).

“Our Q3 results reflect improved execution and steady progress against our strategic priorities,” Intel CEO Lip-Bu Tan said. “AI is accelerating demand for compute and creating attractive opportunities across our portfolio, including our core x86 platforms, new efforts in purpose-built ASICs and accelerators, and foundry services. Intel’s industry-leading CPUs and ecosystem, along with our unique U.S.-based leading-edge logic manufacturing and R&D, position us well to capitalize on these trends over time.”

Intel beat expectations in the quarter, and the firm said it had received $5.7 billion of the $8.9 billion “investment” that the U.S. government has owed it since last year.

The Client Computing Group (CCG) is Intel’s biggest business unit, and it earned revenues of $8.5 billion in the quarter, a gain of 5 percent YOY. Intel CFO David Zinsner said that the firm was experiencing stronger-than-expected demand for its PC chips. Intel’s Data Center and AI (DCAI) added another $4.1 billion in revenues, a decline of 1 percent.

Intel eliminated its Network and Edge Group (NEX) business unit in the quarter and integrated it into CCG and DCAI. And Altera, previously a wholly owned subsidiary, was deconsolidated from Intel’s earnings now that it sold 51 percent of Altera’s issued and outstanding common stock.

The Intel Foundry reports its earnings separately from Intel and it saw revenues decline 2 percent YOY to $4.2 billion. This business is considered the future of the company, but it has yet to secure a single major customer and all its revenues came from Intel manufacturing its own chips.