Intel’s shares increased by almost 10 percent in Frankfurt on Friday, one day after the company surpassed expectations in its third-quarter earnings due to its radical cost-cutting actions.
The outcomes were the first earnings of the company declared following its multibillion-dollar investments by Nvidia and Japan-based SoftBank and an unprecedented U.S. government stake, as investors expected a significant cash inflow.
Its shares gained approximately 7 percent after-hours trading in the U.S. on Thursday and 9.7 percent on Friday in Frankfurt.
These gains were increased on Friday in the trading session in Frankfurt, and shares rose by 9.7 percent, which was one of the best performances of Intel in the market in the last few months.
Market watchers do not only attribute the rise to external investments, but also to the internal cost management of the company.
Through cost-cutting operations and optimization of resource use, Intel has increased its profit margins by a large factor, to help alleviate the feelings of uncertainty that investors may feel due to the global competition and fluctuation of the semiconductor market.
According to industry observers, the recent trend of Intel proves the effectiveness of strategic alliances and effective financial strategies.
The impact of external funds and internal efficiencies seems to have placed the firm in a stable growth in the next few quarters, though there are still challenges.
