Intel reports Q3 revenue beat, AI-driven growth, NVIDIA collaboration

$INTC: Intel's Q3 beat expectations, marking the fourth consecutive quarter of improved execution. Revenue hit $13.7 billion, with non-GAAP gross margin at 40%—four points above guidance. The company is optimistic about AI driving growth, highlighting its x86 architecture and partnership with NVIDIA. However, Q4 guidance disappointed: revenue projected at $12.8 to $13.8 billion—a miss versus the $13.37 billion consensus—and adjusted EPS at $0.08, below the $0.09 estimate. Intel Foundry Services is making strides with Intel 18A and engaging potential customers for Intel 14A. Fab 52 in Arizona is fully operational. The company is experiencing capacity constraints on Intel 10 and 7, expected to last into 2026. Despite supply challenges, Intel secured roughly $20 billion through strategic partnerships and asset monetization, ending Q3 with $30.9 billion in cash. They repaid $4.3 billion in debt and are prioritizing deleveraging. 2025 gross capital investment is anticipated to be approximately $18 billion.

Intel shares surged following the company’s strongest earnings since 2023, driven by aggressive cost-cutting measures and significant investments in AI technology. 🤖 The semiconductor giant reported higher-than-expected revenue, boosted by growing demand for AI chips. Analysts view Intel’s strategic focus on AI as key to regaining market share against rivals like Nvidia. This financial milestone signals a robust turnaround amid an increasingly AI-driven semiconductor landscape.

Nvidia achieved a historic moment on Wednesday morning, with its stock price breaking through $210 and its market capitalization surpassing the $5 trillion mark, becoming the first company globally to reach this milestone. This price also far exceeds the previously considered breakout point of $205.76. While this leap itself is remarkable, the time it took Nvidia to grow from $4 trillion to $5 trillion is still shorter than the astonishing speed it took to grow from $2 trillion to $3 trillion at the beginning of last year, when it only took a little over three months. Even more impressive is that Nvidia's current market capitalization exceeds the combined market capitalization of the energy, real estate, and materials sectors in the S&P 500. Within the semiconductor industry, Nvidia's size is almost overwhelming: its total market capitalization exceeds the combined market capitalization of chip giants such as AMD, ARM, ASML, Broadcom, Intel, Lam Research, Micron, Qualcomm, and TSMC. This is not only a revolution in the capital markets, but also a strong pricing expectation of AI dominating the future.

Chipmakers like Nvidia, Broadcom, and AMD use stock-based pay to retain employees amid the AI boom. Stock payouts, which vest over time, incentivize employees to stay longer at these companies. Nvidia, Broadcom, and AMD's stock values have surged, making RSUs highly lucrative for employees. https://lnkd.in/gStSYwWU

Today: Nvidia became the first company in history to achieve a $5 trillion market capitalization, surpassing previous records set by tech giants like Apple and Microsoft, as its shares surged over 3% amid continued Al-driven demand. This milestone underscores Nvidia's dominance in the artificial intelligence sector, fueled by CEO Jensen Huang's strategic deals and the rapid adoption of its GPUs for data centers and computing. The rally was further boosted by positive comments from President-elect Trump at Nvidia's GTC event, highlighting the company's pivotal role in the ongoing Al frenzy that has propelled its valuation from under $1 trillion just two years prior. As Nvidia eyes even higher revenues from upcoming Blackwell and Rubin GPU lines, this achievement signals a transformative era for semiconductors and global tech investment.

We are adding Intel (NASDAQ: INTC) as a potential turnaround opportunity, centered on the recovery of its foundry business (IFS) — currently a drag on earnings but a major source of optionality. We believe recent partnerships with NVIDIA and AMD will help Intel attract more external clients, gradually lifting foundry utilization from about 20% today to over 70%, the level required for breakeven. Intel equity offers 35-80% upside if foundry business rises to 70-80%, implying fair value range between $58-78/share. Read in more details: https://lnkd.in/eBYAkJMb

Nvidia bought into Intel with a $5B investment. The companies plan t develop new data center chips together.  As the demand for these data centers comes quickly, it seems like these big companies need to make big moves to match the supply.  Hence, 2 giants coming together.  Nvidia’s share price rose slightly as a result, but Intel benefitted greatly, as its shares got a massive boost.

Nvidia has become the world’s first $5tn company after the US chip giant’s stock was propelled by strong sales of its AI systems and the prospect of expanded access to the Chinese market. Nvidia market cap milestones: • May 2023 $1 trillion • Feb 2024 $2 trillion • Jun 2024 $3 trillion • Jul 2025 $4 trillion • Oct 2025 $5 trillion

Nvidia Becomes First Company to Surpass $5 Trillion Market Cap On the evening of October 29th, Beijing time, Nvidia's stock price opened 3% higher, surpassing the $5 trillion market capitalization mark, making history. As of press time, Nvidia was up over 5%, with a total market capitalization exceeding $5.1 trillion, an increase of $250 billion in a single day. In related news, Nvidia CEO Jensen Huang announced a series of new products and deals at the company's developer conference in Washington on Tuesday. The company stated that its AI processors have secured $500 billion in orders and will build seven new supercomputers for the U.S. Department of Energy. Nvidia took only 113 days to jump from $4 trillion to $5 trillion, while it took 410 days to go from $3 trillion to $4 trillion.