Intel's (NASDAQ:INTC) recent Q3 results show some momentum, yet caution is advised. The company reported $13.3 billion in revenue, slightly above expectations, and forecasted continued gains in Q4. However, underlying challenges remain: Intel is dealing with significant restructuring and asset impairment charges totaling $15.9 billion, which led to a non-GAAP EPS loss of $0.46. While Intel shares surged 6% premarket, analysts remain wary, flagging potential roadblocks in the crucial 18A node production that Intel hopes will restore its competitive edge in the foundry space?.

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The Client Computing Group (CCG) remains Intel's primary revenue engine, and collaborations with industry players like AMD signal Intel's effort to expand its ecosystem. But analysts, including those from Jefferies, highlight risks around high inventory levels and an overheated PC market, which could impact demand into 2025. Despite Intel's 18A node drawing interest from tech giants like Amazon Web Services, Morgan Stanley remains cautious, suggesting that Intel's turnaround will hinge heavily on sustained execution in its foundry strategy and the success of its next-gen chips?

For Q4, Intel has issued guidance of $13.3 billion to $14.3 billion in revenue, with a GAAP EPS loss of $0.24 but a positive non-GAAP EPS of $0.12. CEO Pat Gelsinger is driving a restructuring plan aimed at efficiency and profitability, but with multiple moving parts in Intel's strategic pivot, execution risks are high. Evercore's Mark Lipacis sees Intel's ongoing cost-cutting measures and focus on the foundry business as key potential growth drivers, but investors should keep an eye on Intel's progress with its technology roadmap as it works to reclaim its position in the semiconductor sector