At the conclusion of a tough week for Big Tech earnings that saw a tech selloff and pushed the major indices into the red, Amazon (AMZN) -) and Intel (INTC) -) reported earnings Thursday night, finally giving investors something to celebrate.
Intel reported adjusted earnings of 41 cents per share, nearly double the 22 cents per share that Wall Street expected. The company's revenue additionally beat expectations, coming in at $14.16 billion for the quarter, above consensus predictions of $13.53 billion.
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The entire report, however, wasn't glowing: revenue fell by 8% this quarter, marking the seventh quarter in a row of declining revenue for the chipmaker.
But shares in the company surged more than 7% in pre-market trading, in part due to Intel's rosy outlook for revenue growth in the current quarter, which came in at a range of $14.6 billion to $15.6 billion.
“Our results exceeded expectations for the third consecutive quarter, with revenue above the high end of our guidance and EPS benefiting from strong operating leverage and expense discipline," CFO David Zinsner said in a statement. "As demonstrated by our recent portfolio actions, we are highly focused on being great allocators of our owners’ capital and unlocking value for shareholders.”
CEO Pat Gelsinger said that the company plans to cut costs by roughly $3 billion this year.
And despite mounting competition and pressure from Nvidia (NVDA) -) as it looks to enter the PC chip market, Gelsinger said that the company doesn't see this competition as being "all that significant."
Intel's foundry services, its new semiconductor offshoot, reported 300% year-over-year growth amid news of an unnamed new customer.
"We delivered a standout third quarter, underscored by across-the-board progress on our process and product roadmaps, agreements with new foundry customers, and momentum as we bring AI everywhere,” Gelsinger said in a statement.
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