With an Intel recovery underway, all eyes turn to its foundry business

Intel reported a strong third-quarter performance, surpassing Wall Street expectations with $13.7 billion in revenue and a net income of $4.1 billion, a significant turnaround from a $16.6 billion loss in the same period last year. This improvement was driven by revenue growth, substantial cost-cutting measures including layoffs, and major investments from Softbank, Nvidia, and the U.S. government. Intel also bolstered its financial position by divesting non-core assets, such as selling its hardware division and an autonomous driving technology company, raising billions to support its turnaround efforts. CEO Lip-Bu Tan emphasized that these actions have strengthened Intel’s balance sheet and operational flexibility, positioning the company for continued strategic execution. Despite the positive quarterly results, Intel provided limited details on the future of its foundry business, which manufactures custom chips and has struggled since its inception. The foundry segment is a key focus for Tan and is supported by the U.S. government’s investment, which includes conditions for