Santa Clara:US semiconductor company Intel has announced a significant 21% increase in third-quarter revenue, reaching $16.5 billion. This growth is largely attributed to strong demand for Intel's data center and artificial intelligence processors.

According to Anadolu Agency – English, the revenue increase surpasses company guidance, rising from $13.7 billion in the same quarter of 2025. The Data Center and AI group was a standout performer, with revenue skyrocketing 78% year-on-year to $7.3 billion, marking the segment's fastest growth rate in 15 years. Furthermore, Intel Foundry reported a 58% increase in revenue, totaling $6.7 billion for the quarter.

In contrast, Intel's Client Computing and Physical AI Group experienced a 5% decline in revenue, dropping to $8.1 billion, which the company attributes to ongoing weakness in the personal computer market. Despite this, Intel's gross margin improved to 43% from 38.2% the previous year, and the operating margin expanded to 15.3% from 5%.

The company's net income under generally accepted accounting principles fell by 18% to $3.3 billion, or $0.60 per diluted share. However, on an adjusted basis, non-GAAP net income saw a significant increase of 169% to $2.8 billion, or $0.52 per diluted share. Intel's CEO, Lip-Bu Tan, highlighted the company's improving execution and progress in process technology, expressing confidence in long-term growth despite challenges in the PC industry.

David Zinsner, Intel's CFO, noted that the downturn in personal computer demand is likely to persist until at least the first half of 2027. In a strategic move to strengthen its financial position, Intel completed a $23 billion public equity offering and announced plans to acquire the quantum software platform Classiq. Looking ahead, Intel projects fourth-quarter revenue between $15 billion and $16 billion, with expected GAAP diluted earnings per share of $0.10 and non-GAAP earnings of $0.25.