ETFs in Spotlight as Intel Beats Q3 Earnings on Lower Restructuring Costs

Shares of Intel Corp. (INTC) jumped 6% in extended trading on Oct. 23 (as reported by CNBC), after posting better-than-expected third-quarter 2025 earnings and revenues. Its impressive third-quarter results also reflected strong gross margin growth, along with Intel’s solid cost discipline, which lowered its operating expenses. As AI-driven demand continues to boost growth opportunities for INTC’s key product lines, including its core x86 platforms, exchange-traded fund (ETF) investors may want to monitor ETFs with significant exposure to this renowned chipmaker. These funds include First Trust NASDAQ Semiconductor ETF (FTXL), REX FANG & Innovation Equity Premium Income ETF (FEPI), iShares Edge MSCI USA Value Factor ETF (VLUE) and YieldMax AI & Tech Portfolio Option Income ETF (GPTY). But before diving into the specifics of these ETFs, let us check how Intel performed in the third quarter, in terms of other metrics. A Brief Analysis of INTC’s Q3 ResultsIntel reported adjusted earnings of 23 cents per share, which surpassed the Zacks Consensus Estimate of 22 cents by a huge count. The figure also marked an improvement from its year-ago quarter’s reported loss of 46 cents. Revenues of $13.65 billion also beat the consensus estimate by 4.1% and were up 3% year over year. Segment-wise, within the Intel Products unit, Client Computing Group (“CCG”) revenues increased 4.6% year over year, whereas Datacenter and AI Group (“DCAI”) revenues dropped 0.6%. On the other hand, Intel Foundry revenues decreased 2.4%. Intel’s adjusted gross margin improved a whopping 2,200 basis points to 40% in the third quarter, with the 25.2% slump in cost of sales playing the role of a major catalyst. On the other hand, its operating expenses plunged 59% year over year, primarily driven by a huge decline in its restructuring charges. The company ended the third quarter with adjusted free cash flow of $896 million, whereas cash flow from its operating activities totaled $5.41 billion.Major highlights of the quarter included Intel’s execution on major deals, which helped it secure roughly $20 billion of cash. These deals included Intel and NVIDIA’s (NVDA) collaboration to jointly develop multiple generations of custom data center and PC products. NVDA also agreed to invest $5 billion in Intel’s common stock, expected to be completed by the end of 2025.Meanwhile, the U.S. government also invested $5.7 billion in Intel during the third quarter to support the latter’s critical semiconductor manufacturing and advanced packaging projects. Following Intel’s third-quarter results, Bernstein SocGen Group raised its price target on the stock to $35 from $21 while maintaining a Market Perform rating, citing optimism surrounding INTC’s improved balance sheet as well as progress in ramping its 18A manufacturing process and increased confidence regarding its 14A technology. However, the analysts at Bernstein also expressed concern regarding the company’s sustainability challenges, particularly in PC market dynamics and yield issues with 18A technology (as reported by Investing.com). Intel-Heavy ETFs in SpotlightFirst Trust NASDAQ Semiconductor ETF (FTXL)This fund, with net assets worth $343.1 million, provides exposure to 31 U.S. semiconductor companies. Of these, Intel takes the second spot, accounting for a 9.95% share.FTXL has surged 40.7% year to date and charges 60 basis points (bps) in fees. Its average daily trading volume is 12,820 shares.REX FANG & Innovation Equity Premium Income ETF (FEPI)This is an actively managed ETF with assets worth $572.9 million, providing exposure to 15 leading highly liquid technology stocks. Of these, Intel takes the second spot, accounting for a 6.76% share.FEPI has surged 18.3% year to date and charges 65 bps in fees. iShares MSCI USA Value Factor ETF (VLUE)This fund, with net assets worth $8.4 billion, provides exposure to 145 large and mid-cap U.S. stocks. Of these, Intel takes the second spot, accounting for a 6.19% share.VLUE has soared 25.2% year to date and charges 15 bps in fees. Its average daily trading volume is 387,373 shares. YieldMax AI & Tech Portfolio Option Income ETF (GPTY)This is an actively managed fund, with net assets worth $76.6 million, which offers exposure to a select portfolio of Al & Tech companies. Of these, Intel takes the third spot, accounting for a 6.54% share.GPTY has soared 22.4% year to date and charges 99 bps in fees.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks