Intel Stock Jumps as Sales Top Estimates Despite Widening Losses

Intel (INTC) reported third-quarter revenue that topped analysts’ expectations, sending shares higher after the bell Thursday despite widening losses.

The chipmaker’s third-quarter revenue fell 6% year-over-year to $13.3 billion, above the $13.03 billion consensus estimate of analysts compiled by Visible Alpha. Intel posted a wider-than-expected loss of $16.6 billion, after reporting a $1.61 billion loss in the second quarter as the chipmaker works to cut costs. A year ago, the chipmaker had reported a profit of around $300 million. 

Intel said it anticipates fourth-quarter revenue of $13.3 billion to $14.3 billion, compared to a consensus estimate of $13.66 billion. It projects a loss of 24 cents per share, steeper than the loss of 12 cents per share analysts had been expecting. 

Results Come as Chipmaker Works To Turn Around Business

Intel’s results come as the storied chipmaker tries to turn around the business after losing market share to competitors and missing key opportunities to benefit from the boom in demand for artificial intelligence (AI). Shares took a hit in recent months as worries mounted about its ability to engineer a comeback after reporting wider-than-expected losses in the prior quarter and announcing massive layoffs.

Intel shares surged over 14% in extended trading following the release. They were down more than 57% for the year through Thursday’s close, making it one of the worst-performing S&P 500 stocks of the year.