Intel Reports $13.7 B in Q3 Revenue as AI Demand Drives Growth
Revenue reached $13.7 billion, up 3 percent year-over-year, reflecting momentum across Intel’s core businesses and new AI-related initiatives.
Intel Corporation reported a stronger-than-expected third quarter for 2025, driven largely by the accelerating global demand for artificial intelligence (AI) computing. Revenue reached $13.7 billion, up 3 percent year-over-year, reflecting momentum across Intel’s core businesses and new AI-related initiatives.
Intel’s CEO Lip-Bu Tan said the quarter’s performance underscores “improved execution and steady progress” in Intel’s strategic transformation, adding that AI is reshaping compute demand and opening new opportunities across its product lines — from x86 platforms to custom ASICs, accelerators, and foundry services.
The company highlighted its expanding role in AI hardware, unveiling Intel Core Ultra series 3 (“Panther Lake”) processors and previewing its Intel Xeon 6+ (“Clearwater Forest”) server chips, both built on the next-generation Intel 18A process. These chips promise significant power and performance gains for AI workloads.
Intel also announced a strategic collaboration with NVIDIA, integrating Intel’s CPUs and x86 ecosystem with NVIDIA’s AI and accelerated-computing platforms through NVLink. In addition, NVIDIA and SoftBank Group collectively invested $7 billion in Intel’s stock, signaling strong confidence in its AI roadmap and U.S. manufacturing expansion.
Operating profit improved sharply, with gross margins rising to 38.2 percent GAAP (up 23 points YoY) as Intel tightened costs and benefited from AI-related demand. The company generated $2.5 billion in cash from operations during the quarter and forecast Q4 revenue of $12.8–$13.8 billion.
Intel CFO David Zinsner noted that AI computing demand is outpacing supply — a trend expected to continue into 2026. He pointed to new U.S. government funding of $8.9 billion, including $5.7 billion received in Q3, which will help strengthen Intel’s balance sheet and domestic manufacturing base.
With AI now central to Intel’s product strategy and foundry roadmap, the company sees itself positioned to regain technology leadership and capitalize on the booming demand for compute power across data centers, PCs, and edge applications.
