Intel's Q3 results reveal a company in recovery, with revenue up 3% year-on-year to $13.7 billion. Gross margins have improved significantly to 40%. The company's foundry business, however, remains a key area of interest, posting $4.2 billion in revenue, a 2% decrease. Intel is investing heavily in foundry expansion, including the fully operational Fab 52 in Arizona, manufacturing advanced 18A wafers.
Despite progress, Intel faces challenges including capacity constraints on Intel 10 and Intel 7 processes, and supply shortages. The foundry business is not expected to break even until later in the decade. Intel has secured substantial funding, including investments from the U.S. government, Nvidia, and SoftBank, to bolster its manufacturing capabilities. These investments aim to support Intel's strategic role in the semiconductor industry and its expansion plans.
Intel is also making strides in AI, with new product launches and collaborations. The company projects a PC total addressable market (TAM) of 290 million units for 2025, driven by AI demand. Intel's focus remains on disciplined capital deployment and operational execution to navigate ongoing supply constraints and improve its competitive position.
