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Intel’s Results to Reveal If Multibillion-Dollar Rescue Plan Is Working

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All eyes are on Intel’s third-quarter earnings report this Thursday, as investors look for signs that a wave of multibillion-dollar investments from Nvidia, SoftBank, and the U.S. government is stabilizing the struggling chipmaker under its new CEO Lip-Bu Tan.

The fresh funding has lifted Intel’s shares nearly 100% this year, outperforming even AI titan Nvidia, though expectations are high. Analysts expect a 1% drop in quarterly revenue to $13.14 billion, according to LSEG data, and a per-share loss of $0.22. Shares fell 4.5% on Wednesday, ahead of the results.

Investors are eager for clarity on whether the cash infusions are enough to revive Intel’s finances after years of costly manufacturing missteps under former CEO Pat Gelsinger. “The big question is: what does Intel’s big picture look like now, and what does their cash position look like?” said Joe Tigay, portfolio manager at Rational Equity Armor Fund.

The deals have handed Intel a crucial cash lifeline:
– Nvidia invested $5 billion, acquiring about a 4% stake.
– SoftBank added another $2 billion.
– The U.S. government took a 10% stake worth $8.9 billion, after tensions over Tan’s China ties sparked political backlash.

While these moves strengthen liquidity, they also dilute Intel’s earnings per share, analysts warn. “Share dilution is the least of Intel shareholders’ worries,” said Ryuta Makino of Gabelli Funds, noting that investors are focused on the company’s long-term strategy.

Despite new funding, Intel continues to lose ground to AMD and Arm-based rivals in CPUs, while remaining a minor player in the AI chip market dominated by Nvidia. However, the company is seeing renewed strength in PCs, with shipments rising 8% globally, and its PC division revenue expected to jump 11% to $8.12 billion.

Intel’s Panther Lake processor, built on its new 18A manufacturing node, is expected to begin shipping by late 2025 — a key test for Tan’s revised strategy, which scaled back Gelsinger’s aggressive factory expansion.

Revenue in Intel’s data center unit is projected to grow 18% to $3.95 billion, fueled by booming demand for server CPUs that pair with AI GPUs. The manufacturing segment, however, is expected to stay flat at $4.37 billion.

“The markets are giving Intel a lot of patience,” said Tigay. “These investments buy them time — but soon, the products will need to speak for themselves.”

UK Data Centre Spending to Hit £10 Billion Annually by 2029 Amid AI Boom

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Spending on new UK data centres is set to surge to £10 billion a year by 2029, more than five times higher than in 2024, according to new analysis from construction data firm Barbour ABI.

The report found that £1.75 billion was spent on data centre construction in 2023, with that figure projected to rise to £2.38 billion in 2025 as demand for AI-driven computing power continues to accelerate. Over the next five years, tech giants including Microsoft, Nvidia, and Google are expected to invest a combined £25 billion in the UK’s data infrastructure, with nearly 100 new projects already in the pipeline.

Barbour ABI said the expansion reflects both global AI adoption and UK government initiatives, such as the AI Growth Zones, designed to speed up planning approvals for digital infrastructure.

While London and its surrounding regions remain the country’s data centre hub, development is now spreading nationwide, driven by rising demand for low-latency connectivity and renewable energy sources to power data-intensive AI systems.

The largest upcoming project is a $13 billion hyperscale data centre planned in North East England, led by U.S. private equity group Blackstone—a sign that international investors view the UK as a strategic AI infrastructure hub.

The rise in data centre construction comes amid a global race to expand digital capacity following the release of ChatGPT in late 2022, which sparked an explosion in AI model training, cloud computing, and enterprise automation.

Barbour ABI said the shift marks one of the fastest-growing infrastructure trends in the country’s history. “AI has completely reshaped data demands,” the report noted. “We’re now entering a decade defined by hyperscale expansion.”

Apple Nears $4 Trillion Valuation as iPhone 17 Demand Surges in China and U.S.

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Apple shares soared 4.2% to $262.9 on Monday, pushing the tech giant’s market capitalization to $3.9 trillion — within striking distance of becoming the third company ever to hit $4 trillion. The surge follows stronger-than-expected early sales of the iPhone 17 series, which has outperformed its predecessor across key markets.

Data from Counterpoint Research showed that iPhone 17 sales in China and the United States were 14% higher during the first 10 days compared to the iPhone 16 launch, signaling renewed momentum for Apple’s flagship product. The rally places Apple just behind AI-chip leader Nvidia, now the world’s most valuable company.

Brokerage Evercore ISI added Apple to its Tactical Outperform List, predicting that the company will exceed quarterly forecasts and issue optimistic guidance for the December period. Analysts pointed to robust online orders in China, where delivery times suggest particularly strong early demand.

Apple’s September launch introduced an upgraded iPhone lineup, including the slimmer iPhone Air, while keeping prices stable despite U.S. tariff pressures. “The demand trends are clearly on the front foot again,” said Art Hogan, chief market strategist at B Riley Wealth.

After struggling earlier this year due to weakness in China and tariff concerns, Apple’s stock has rebounded since August, buoyed by its $100 billion U.S. investment plan aimed at mitigating trade risks. If the rally holds, Monday will mark Apple’s largest one-day gain in four weeks, setting the stage for its October 30 earnings report.