Intel's Client Computing Surge: Is This Momentum Sustainable?

Intel is showing real momentum in its Client Computing Group. Q3 revenues hit $8.53 billion, jumping from $8.16 billion a year ago—beating analyst expectations. That 8% quarter-over-quarter bump signals something important: the PC market isn’t just recovering, it’s shifting.

Two major forces are pushing this growth. First, enterprises are rushing to upgrade to Windows 11, treating it as more than just a software refresh but a necessity for modern workflows. Second, AI PCs are catching fire. Universities like Arizona State already deploying Intel-powered AI PC fleets to enhance operations. Intel expects to ship over 100 million units by 2025, signaling confidence in this trajectory.

The partnership with Microsoft adds another layer to Intel’s strategy. By integrating vPro manageability with Microsoft Intune, Intel is solving a real pain point: businesses can now manage cloud-connected PC fleets through a familiar platform, bridging the gap between physical hardware and cloud infrastructure. For IT teams managing distributed workforces, this matters.

Upcoming processor launches—Lunar Lake, Arrow Lake, and Panther Lake—are positioned to extend this momentum through the next few quarters.

The Competition Isn’t Sleeping

AMD posted $4 billion in Q3 revenue, up 73% year-over-year, riding strong Ryzen processor demand and Radeon GPU sales. Meanwhile, Qualcomm’s ARM-based Snapdragon X Elite processors are gaining traction in the AI PC space, representing a potential threat to Intel’s PC dominance. Qualcomm’s QCT segment reported $8.99 billion in quarterly revenue, up from $8.07 billion.

Why Intel Stock Prediction Matters Right Now

Intel stock rallied 55.6% over the past year versus 30.7% for the broader semiconductor industry. Trading at 1.38x book value—well below the sector’s 31.73x average—suggests the market still sees upside potential. However, earnings estimates for 2025 have ticked up while 2026 forecasts have softened, signaling some caution about sustained growth beyond next year.

The real question: can Intel’s CCG momentum hold while fending off ARM-based alternatives? The next two quarters will be telling.