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Intel Corporation (INTC - Free Report) is scheduled to report third-quarter 2025 earnings after the closing bell on Oct. 23. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Datacenter and AI Group (DCAI) segment, owing to higher deployment of the Intel Gaudi 3 accelerator, Intel Core Ultra 200V series processors and advancements in artificial intelligence (AI)-accelerated high-performance computing solutions.
Factors at Play
The DCAI segment seeks to develop leading data center products, including Intel Xeon servers and field programmable gate array products, while overseeing the overall AI strategy.
During the quarter, Intel partnered with Exostellar to make enterprise-grade AI infrastructure accessible in a cost-effective manner. Intel’s partnership with this leading innovator in autonomous compute orchestration and cloud optimization, which leverages AI and ML technologies, is likely to deliver an end-to-end solution with support for quota enforcement, dynamic borrowing, fair queuing and priority-based scheduling. This will bring cloud-like agility and efficiency to on-premises or hybrid infrastructure for a more competitive AI hardware ecosystem.
The collaboration combines Intel Gaudi AI accelerators with Exostellar’s advanced Kubernetes-Native AI Orchestration, Multi-Cluster Operator to enable customers to maximize utilization, control access and streamline the compute resources across teams and projects. The Intel Gaudi 3 AI accelerator is poised to power AI systems with remarkable efficiency. Equipped with up to tens of thousands of accelerators interconnected through Ethernet, the Gaudi 3 accelerator promises a substantial boost in AI training and inference capabilities, enabling global enterprises to deploy AI at scale with ease. It boasts impressive performance metrics, offering faster time-to-train and superior inference throughput. Furthermore, Intel's commitment to open, community-based software and industry-standard Ethernet networking ensures flexibility and scalability for enterprises.
In the to-be-reported quarter, Intel launched its AI Boost NPU and Intel Core Ultra 200V Series Processor that powered the world’s first fully rugged Copilot+PC in tablet form. Dubbed F120, this state-of-the-art tablet is designed to harness AI capabilities in complex and challenging environments across the defense, utilities, manufacturing and automotive industries. The F120 boasts seamless multitasking prowess, courtesy of Intel’s NPU and processor support. The state-of-the-art features will expedite the development and adoption of AI PCs, further solidifying its position as a frontrunner in the AI revolution.
The increased adoption of Intel processors and NPUs follows the positive feedback of Xeon 6 processors with Performance-cores (P-Cores). This system-on-chip (SoC) has been designed to meet the huge demand for high AI workloads across various sectors. With industry-leading performance across data center workloads and up to two times higher performance in AI processing, the Xeon 6 family delivers the industry’s best central processing unit (CPU) for AI at a lower total cost of ownership (TCO).
Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power-efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future. These are likely to have generated incremental revenues in the quarter.
However, China's purported move to replace U.S.-made chips with domestic alternatives is expected to affect the segment’s revenues as Intel derives a significant portion of its revenues from the communist nation. The recent directive to phase out foreign chips from key telecom networks by 2027 underscores Beijing's accelerating efforts to reduce reliance on Western technology amid escalating U.S.-China tensions and tariff wars.
As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. In addition, Intel is witnessing intensifying competition in the server, storage and networking markets from its rivals.
Overall Expectations
The Zacks Consensus Estimate for Data Center and AI revenues is pegged at $3.96 billion, indicating a rise from $3.35 billion in the year-ago quarter. Our estimate for revenues from this segment is pegged at $4.08 billion, suggesting a 1.5% year-over-year decline.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $13.11 billion, which indicates a decrease from the year-ago quarter’s reported figure of $13.28 billion. The consensus estimate for break-even earnings suggests an improvement from a loss of 46 cents reported in the prior year.
Earnings Whispers
Our proven model predicts an earnings beat for Intel for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel currently has an ESP of +116.67% with a Zacks Rank #3.
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Nov. 4. It has an Earnings ESP of +17.32% and carries a Zacks Rank #1.
The Earnings ESP for Monolithic Power Systems, Inc. (MPWR - Free Report) is +0.77% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct. 30.
The Earnings ESP for Qualcomm Incorporated (QCOM - Free Report) is +1.43% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 5.
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Will Higher DataCenter Revenues Benefit Intel's Q3 Earnings?
Key Takeaways
Intel Corporation (INTC - Free Report) is scheduled to report third-quarter 2025 earnings after the closing bell on Oct. 23. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Datacenter and AI Group (DCAI) segment, owing to higher deployment of the Intel Gaudi 3 accelerator, Intel Core Ultra 200V series processors and advancements in artificial intelligence (AI)-accelerated high-performance computing solutions.
Factors at Play
The DCAI segment seeks to develop leading data center products, including Intel Xeon servers and field programmable gate array products, while overseeing the overall AI strategy.
During the quarter, Intel partnered with Exostellar to make enterprise-grade AI infrastructure accessible in a cost-effective manner. Intel’s partnership with this leading innovator in autonomous compute orchestration and cloud optimization, which leverages AI and ML technologies, is likely to deliver an end-to-end solution with support for quota enforcement, dynamic borrowing, fair queuing and priority-based scheduling. This will bring cloud-like agility and efficiency to on-premises or hybrid infrastructure for a more competitive AI hardware ecosystem.
The collaboration combines Intel Gaudi AI accelerators with Exostellar’s advanced Kubernetes-Native AI Orchestration, Multi-Cluster Operator to enable customers to maximize utilization, control access and streamline the compute resources across teams and projects. The Intel Gaudi 3 AI accelerator is poised to power AI systems with remarkable efficiency. Equipped with up to tens of thousands of accelerators interconnected through Ethernet, the Gaudi 3 accelerator promises a substantial boost in AI training and inference capabilities, enabling global enterprises to deploy AI at scale with ease. It boasts impressive performance metrics, offering faster time-to-train and superior inference throughput. Furthermore, Intel's commitment to open, community-based software and industry-standard Ethernet networking ensures flexibility and scalability for enterprises.
In the to-be-reported quarter, Intel launched its AI Boost NPU and Intel Core Ultra 200V Series Processor that powered the world’s first fully rugged Copilot+PC in tablet form. Dubbed F120, this state-of-the-art tablet is designed to harness AI capabilities in complex and challenging environments across the defense, utilities, manufacturing and automotive industries. The F120 boasts seamless multitasking prowess, courtesy of Intel’s NPU and processor support. The state-of-the-art features will expedite the development and adoption of AI PCs, further solidifying its position as a frontrunner in the AI revolution.
The increased adoption of Intel processors and NPUs follows the positive feedback of Xeon 6 processors with Performance-cores (P-Cores). This system-on-chip (SoC) has been designed to meet the huge demand for high AI workloads across various sectors. With industry-leading performance across data center workloads and up to two times higher performance in AI processing, the Xeon 6 family delivers the industry’s best central processing unit (CPU) for AI at a lower total cost of ownership (TCO).
Intel Xeon platforms have reportedly set the benchmark in 5G cloud-native core with substantial performance and power-efficiency improvements, additional power-saving capabilities and easy-to-deploy software. This has triggered healthy demand trends from major telecom equipment manufacturers and independent software vendors to optimize and unleash proven power savings for a more sustainable future. These are likely to have generated incremental revenues in the quarter.
However, China's purported move to replace U.S.-made chips with domestic alternatives is expected to affect the segment’s revenues as Intel derives a significant portion of its revenues from the communist nation. The recent directive to phase out foreign chips from key telecom networks by 2027 underscores Beijing's accelerating efforts to reduce reliance on Western technology amid escalating U.S.-China tensions and tariff wars.
As Washington tightens restrictions on high-tech exports to China, Beijing has intensified its push for self-sufficiency in critical industries. This shift poses a dual challenge for Intel, as it faces potential market restrictions and increased competition from domestic chipmakers. In addition, Intel is witnessing intensifying competition in the server, storage and networking markets from its rivals.
Overall Expectations
The Zacks Consensus Estimate for Data Center and AI revenues is pegged at $3.96 billion, indicating a rise from $3.35 billion in the year-ago quarter. Our estimate for revenues from this segment is pegged at $4.08 billion, suggesting a 1.5% year-over-year decline.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $13.11 billion, which indicates a decrease from the year-ago quarter’s reported figure of $13.28 billion. The consensus estimate for break-even earnings suggests an improvement from a loss of 46 cents reported in the prior year.
Earnings Whispers
Our proven model predicts an earnings beat for Intel for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intel currently has an ESP of +116.67% with a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Intel Corporation Price and EPS Surprise
Intel Corporation price-eps-surprise | Intel Corporation Quote
Other Stocks to Consider
Here are some other companies you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Nov. 4. It has an Earnings ESP of +17.32% and carries a Zacks Rank #1.
The Earnings ESP for Monolithic Power Systems, Inc. (MPWR - Free Report) is +0.77% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Oct. 30.
The Earnings ESP for Qualcomm Incorporated (QCOM - Free Report) is +1.43% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov. 5.