Intel's Q3 profit exceeds expectations (247wallst.com)

Intel beat Q3 estimates, reporting adjusted EPS of $0.23 (vs. $0.01 expected) and revenue of $13.7B (beat consensus). Client Computing and Data Center & AI (DCAI) businesses topped Street expectations even as DCAI was slightly down year‑over‑year at $4.1B. Key metrics showed margin expansion (40.0%, +220 bps YoY), net income of $4.1B (+124% YoY) and free cash flow of $896M. Investors shrugged off a weaker-than-expected Foundry line ($4.2B vs. $4.5B est.) and cautious Q4 revenue guidance ($12.8–13.8B, midpoint below Street), sending shares up ~7.7% in after-hours trading. For the AI/ML community this matters because Intel says AI-driven demand for compute is outpacing supply and expects that shortage to persist into 2026 — a signal that capacity, not just chip design, will constrain deployments. Intel is emphasizing core x86 servers plus purpose‑built ASICs/accelerators and foundry services to capture AI workloads, but the foundry miss underscores execution and capacity risks versus competitors (e.g., TSMC). Strategic investments and U.S. government funding increase operational flexibility, yet lowered R&D and operating costs alongside improved margins suggest a tighter focus on profitability as Intel scales AI hardware. For practitioners and infrastructure planners, expect continued pressure on availability and pricing of AI compute and greater importance placed on vendor roadmaps, supply partnerships, and U.S.-based manufacturing capacity.