Intel Stock Jumps as Sales Top Estimates Despite Widening Losses

Intel (INTC) reported third-quarter revenue that beat analysts’ expectations, sending shares higher after the bell on Thursday despite widening losses.

The chipmaker’s third-quarter revenue fell 6% year over year to $13.3 billion, above analyst estimates of $13.03 billion compiled by Visible Alpha. Intel posted a larger-than-expected loss of $16.6 billion, after reporting a loss of $1.61 billion in the second quarter as the chipmaker works to cut costs. A year ago, the chipmaker reported profits of about $300 million.

Intel said it expects fourth-quarter revenue to range from $13.3 billion to $14.3 billion, compared to consensus estimates of $13.66 billion. It expects a loss of 24 cents per share, which is wider than the loss of 12 cents per share that analysts had expected.

The results come as the chipmaker works to turn its business around

Intel’s results come as the popular chipmaker tries to turn its business around after losing market share to competitors and missing key opportunities to capitalize on booming demand for artificial intelligence (AI). Stocks have taken a hit in recent months as concerns grow about their ability to engineer a comeback after reporting larger-than-expected losses in the previous quarter and announcing widespread layoffs.

Intel shares rose more than 14% in extended trading after the release. It was down more than 57% during the year through Thursday’s close, making it one of the worst-performing S&P 500 stocks of the year.