Intel Admits It’s Not Ready for the PC Boom It Predicted

Based on the latest financial reports and news, Intel has demonstrated strong recent performance with its stock price rising following better-than-expected Q3 2025 earnings. The company is navigating a significant transformation, focusing on its foundry business and AI strategy, supported by major new investments.Intel Stock & Earnings SnapshotThe table below summarizes key information based on the latest Intel earnings report for the third quarter of 2025, released on **October 23, 2025**.| Metric | Q3 2025 Results / Current Data | | :— | :— | | **Intel Stock Price** (as of Oct 23 close) | $38.16 | | **Stock Performance (YTD)** | Up approximately 90% | | **Q3 2025 Revenue** | $13.65 billion (surpassed estimates) | | **Q3 2025 Adjusted EPS** | $0.23 (significantly above forecasts) | | **Q4 2025 Revenue Guidance** | $13.3 billion (midpoint) |🔍 A Closer Look at the Intel NewsThe recent **Intel earnings call** highlighted several strategic developments and challenges that are shaping the company’s trajectory.* **Strategic Partnerships and Government Backing**: A major theme is the strengthening of Intel’s financial position through external investments. The U.S. government became Intel’s top shareholder in August after converting an $8.9 billion grant into a nearly 10% equity stake.The company also received a $5 billion investment from **Nvidia** in September, with the two companies announcing a collaboration to integrate Intel’s CPUs with Nvidia’s AI processors.The Foundry Strategy and AI Focus**: Intel is aggressively pursuing its **Intel Foundry** business, which manufactures chips for other companies. CEO Lip-Bu Tan expressed confidence in this segment, highlighting progress with its advanced 18A and 14A manufacturing processes to attract customers. The partnership with Nvidia is a key part of its strategy to expand in the AI market.Ongoing Challenges: Despite positive results, the company acknowledged hurdles. It is facing supply shortages across its business, particularly for its Intel 10 and Intel 7 nodes, which may limit its ability to meet demand in the short term. The company’s gross margins also remain under pressure.Intel Layoffs in 2025: As part of its effort to streamline operations, the company has reduced its workforce. The employee count was reported as 88,400, down from 124,100 a year earlier.What This Means for ReadersThe recent **Intel stock price** surge reflects investor optimism driven by the strong earnings beat and strategic partnerships. The company is in a complex turnaround phase: it is successfully capitalizing on near-term PC demand while executing a long-term, capital-intensive strategy to become a major foundry and AI player.Key points to watch will be the progress of the **Intel Foundry** in securing major external customers and how quickly the company can resolve its supply constraints to meet sustained demand.