Intel reported third-quarter revenue of $16.51 billion, up about 21% year over year and marginally below the $16.56 billion analysts expected. Adjusted earnings of $0.52 per share beat the roughly $0.41 consensus. Data center and AI revenue rose to $7.3 billion, nearly 80% higher than a year ago, with a 42% operating margin.
The stock still fell sharply, by more than 20% in reports, on weak guidance. Intel expects fourth-quarter revenue of $15-16 billion and a 38% non-GAAP gross margin. Client computing revenue was $8.1 billion, down 9% sequentially, and management expects a drop of more than 20% in the fourth quarter. The guidance also includes about a $300 million revenue hit from the shutdown of its Israel factory, Fab 28.
Intel Foundry revenue grew 16% sequentially to $6.7 billion but posted a $1.9 billion operating loss. The results show AI demand lifting Intel's server business while the PC market softens.