Intel’s Q3 Earnings on Deck: Can Partnerships Fuel Growth?

All eyes are on Intel Corporation (NASDAQ: INTC) as it prepares to release its third-quarter 2025 financial results today, after the closing bell. Intel's stock currently trades at $36.61 in pre-market hours, down 0.84% in the session after a 3.15% dip during yesterday's regular trading session.

This earnings report arrives at a pivotal moment, following a series of high-profile partnerships and strategic investments that have dramatically reshaped the company's outlook and driven substantial stock appreciation this year.

The consensus among analysts is for Intel to report earnings per share (EPS) of a meager $0.01 and revenue of $13.14 billion for the quarter. This comes after a disappointing previous quarter where the company posted a loss of ($0.10) per share, falling short of expectations. While these figures reflect the ongoing challenges in the semiconductor market and the significant investments Intel is making in its manufacturing capabilities, they also highlight the pressure on the company to demonstrate tangible progress.

Much of the recent optimism surrounding Intel stems from a series of strategic partnerships and investments. The most notable include Nvidia's $5 billion investment for co-development of next-generation chips and SoftBank's $2 billion injection to fuel AI research and development. Perhaps most significantly, the U.S. government converted approximately $10 billion in CHIPS Act subsidies into an equity stake, acquiring nearly 10% of the company.

These alliances are not just about the money; they represent a validation of Intel's strategy and a commitment from key players to its future success. The Nvidia collaboration, in particular, has the potential to unlock significant revenue synergies by combining Intel's CPU prowess with Nvidia's GPU dominance.

The market has responded positively to these developments. Intel's stock has surged approximately 85% year-to-date, reaching a two-year high near $37. This impressive growth reflects a renewed confidence in the company's ability to execute its turnaround plan and capitalize on emerging opportunities in areas like AI and advanced manufacturing. However, the stock's beta of 1.33 indicates that it remains more volatile than the broader market, suggesting that markets should be prepared for potential swings.

Ahead of the earnings release, the options market anticipates a significant swing in Intel's stock price, potentially in the range of 12% to 13%. This suggests that the markets are bracing for either a significant upside surprise or a disappointing letdown. While the consensus analyst rating remains a “Hold,” the long-term outlook for Intel is far from settled. Can Intel justify its current stock price based on the earnings data?