Intel Corp. impressed investors on Thursday as the chip maker reported its third-quarter profit, surpassing expectations and providing an optimistic outlook for the current quarter. Following this news, Intel's shares surged nearly 8% in the extended trading session.

In the third quarter, Intel recorded a net income of $297 million, equivalent to 7 cents per share, compared to $1.0 billion, or 25 cents per share, in the same period last year. However, on an adjusted basis, Intel's earnings per share were 41 cents, down from 59 cents a year ago but significantly beating analyst projections of 22 cents.

The company's revenue slipped to $14.2 billion from $15.3 billion year-over-year, but still managed to outperform the FactSet consensus estimate of $13.6 billion. Despite a 3% drop in revenue from its client-computing segment to $7.9 billion, Intel exceeded expectations set at $7.3 billion by analysts. Meanwhile, revenue from the data-center and AI segment declined by 10% to $3.8 billion, just shy of the forecasted $3.9 billion.

Intel demonstrated impressive progress in its adjusted gross margin, recording a substantial increase to 45.8% compared to 39.8% in the second quarter.

Looking forward to the fourth quarter, Intel forecasts a revenue range of $14.6 billion to $15.6 billion, surpassing analyst projections of $14.4 billion. Additionally, the company expects adjusted earnings per share to reach 44 cents, while the FactSet consensus stood at 33 cents, reflecting Intel's confidence in its upcoming performance.

This positive news has contributed to a notable climb in Intel's stock, which has risen by 24% so far this year, outpacing the Dow Jones Industrial Average.

Investors are optimistic about the future possibilities for Intel. The company's impressive quarter, with earnings surpassing expectations and a promising forecast, bodes well for its ability to navigate ongoing challenges.