Lip-Bu Tan, the chief executive officer of Intel Corporation, was observed departing following a meeting at the White House in Washington, D.C., on Monday, August 11, 2025. President Donald Trump announced that members of his Cabinet would continue discussions with Tan in the coming days following the White House encounter. Photographer: Alex Wroblewski/Bloomberg via Getty Images | Image Credits:Alex Wroblewski/Bloomberg / Getty Images. Intel’s third-quarter earnings results exceeded Wall Street expectations, bolstered by a rise in revenue coupled with substantial reductions in costs and a series of significant investments over the preceding two months. Lip-Bu Tan was actively attempting to revitalize the struggling semiconductor giant.
Intel’s revenue results and the reported $4.1 billion in net income presented a markedly improved financial picture compared to its history of quarterly losses. However, the company’s recovery narrative warrants several chapters dedicated to the strategic implementation of cost-cutting measures, including layoffs and other reductions, alongside a series of high-profile investments from SoftBank, Nvidia, and the U.S. government. Intel significantly augmented its balance sheet during the third quarter, announcing the addition of $20 billion during its third-quarter earnings presentation on Thursday, triggering a surge in the company’s stock value. This growth was primarily attributable to three major investments made over the previous three months. In August, SoftBank invested $2 billion. A few days later, the U.S. government took an unprecedented 10% equity stake in Intel. The company had received $5.7 billion of the planned $8.9 billion from the U.S. government to date. Nvidia also acquired a $5 billion stake in Intel in September, as part of a broader agreement to collaborate on the development of chips over time.
“The actions we took to strengthen the balance sheet give us greater operational flexibility and position us well to continue to execute our strategy with confidence,” Tan stated during the company’s earnings call. “In particular, I’m honored by the trust and confidence President Trump and Secretary [Howard] Lutnick have placed in me. Their support highlights Intel’s strategic role as the only U.S.-based semiconductor company with leading-edge logic, [research and development], and manufacturing.” The company also realized $5.2 billion from the sale of its ownership stake in Altera, a hardware company it had owned since 2015, which concluded on September 12. Intel also divested its stake in Mobileye, an autonomous driving tech company.
Intel experienced a quarterly revenue increase of $800 million in the third quarter, reaching $13.7 billion, compared to $12.9 billion in the prior year. Intel reported a net income of $4.1 billion in the third quarter, representing a substantial reversal from the $16.6 billion loss it had recorded in the same period the previous year. The foundry business, despite the strong quarter, remained a key area of focus. This business, which produces custom chips for clients, has faced challenges throughout its development. Lip-Bu Tan initiated significant layoffs within the foundry business this summer as part of his efforts to stabilize and improve its performance.
The Trump administration appears to view the foundry business as a priority. A key condition of the government’s investment in Intel includes a stipulation that Intel will be penalized if it divests from its foundry business over the next five years. Analysts on Wall Street are closely observing the foundry business for indications of the company’s long-term prospects. TechCrunch analysts indicated in August that Intel didn’t necessarily require the capital injection but rather a strategic approach to revitalizing its foundry operations. Tan emphasized that Intel believes its foundry business is “uniquely positioned” to capitalize on the increasing demand for semiconductors, though he offered limited specifics beyond stating that the company is actively engaging with potential foundry customers. Tan added that the growth of the foundry business would remain disciplined. “Building a world-class foundry is a long-term effort founded on trust,” Tan said. “As a foundry, we need to ensure that our process can be easily used by a variety of customers, each with their unique way of building their own products. We must learn to delight our customers as they count on us to build wafers, to meet all their needs for powerful performance, yield, cost, and schedule.”
