Intel Corporation (INTC) reported a profit in the third quarter with revenues of $13.7 billion, up 3% year over year. The company’s products group division saw a 3% increase in revenue, led by the Client Computing Group. Net income totaled $4.1 billion, reversing a net loss from the previous year.

Intel’s Data Center and AI division generated $4.1 billion in revenue, with a recent deal with NVIDIA Corporation expected to boost growth. The partnership will integrate Intel’s x86 ecosystem with NVIDIA’s AI platforms. Intel’s foundry business produced $4.2 billion in revenue, and a collaboration with Microsoft is expected to expand this division significantly.

Despite recent positive financial performance, Intel’s high valuation could be a potential challenge for the stock. With a P/E ratio of 327.75 times forward earnings, new investors may want to wait for clear signs of a genuine turnaround before investing. Intel currently holds a Zacks Rank #3 (Hold).

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Read more at Nasdaq: Intel’s Strong Q3 Earnings Fuel Turnaround Hopes: Time to Buy?