Computers Intel with billions in profit after a dry spell

SDA

23.10.2025 - 23:16

Intel has been struggling with problems for years. But the new CEO's cost-cutting course is apparently going in the right direction. (archive picture)
Intel has been struggling with problems for years. But the new CEO's cost-cutting course is apparently going in the right direction. (archive picture)
Keystone

Intel made it into the profit zone in the last quarter, thanks in part to lower red figures in manufacturing. The chip company posted a surplus of 4.1 billion dollars after a loss of 16.6 billion dollars a year earlier.

Keystone-SDA

Sales increased by three percent to 13.7 billion dollars, as the company announced on Thursday.

In the previous quarter, Intel received billions of dollars in cash injections from the US government and rival Nvidia. The Group also sold the specialist provider Altera. Group CEO Lip-Bu Tan, who has been in office for several months, had embarked on a tough cost-cutting course. The number of employees fell from 96,400 to 83,300 within three months, of which only 3,300 were attributable to the separation from Altera.

Less loss in manufacturing

The operating loss in the manufacturing division fell to 2.3 billion dollars from just under 5.8 billion dollars a year earlier. Intel wants to establish itself as a contract manufacturer for other chip developers. This is an expensive undertaking that has so far been slower than hoped. For example, plans for a large factory in Magdeburg were abandoned because Intel did not see enough demand for it.

Investors were relieved: Intel shares rose by more than seven percent at times in after-hours trading.

Intel once dominated the semiconductor market, but has been struggling with problems for years. Graphics card specialist Nvidia has conquered a leading position, particularly in the business with chips for artificial intelligence. Intel is also under pressure in its traditional business with PC processors and chips for data centers.