Intel Corporation (INTC) reported a significant increase in non-GAAP gross profit for the third quarter of 2025, reaching $5.45 billion, up from $2.39 billion the previous year. This growth coincided with an operating margin improvement to 40%, surpassing management’s guidance by 4%. Key drivers included rising revenues, a more favorable product mix, and lower inventory reserves.
Intel’s Client Computing Group notably contributed to this success, generating $8.53 billion in revenue, up from $8.16 billion in the same quarter last year. This surge is attributed to a recovering PC market, fueled by the increasing adoption of Windows 11. The company also saw a reduction in costs, with sales dropping to $8.43 billion from $11.28 billion year-over-year, further enhancing operational efficiency.
As Intel faces competition from Advanced Micro Devices (AMD) and NVIDIA Corporation (NVDA), both companies reported solid growth in their gross profits as well. AMD achieved a non-GAAP gross profit of $4.99 billion, while NVIDIA’s was $41.9 billion, reflecting their respective margins of 54% and 73.6%. Overall, Intel’s stock has risen 78.2% over the past year, outperforming the semiconductor industry’s average growth of 28.5%.
