Intel (INTC) shares soared in after-hours trading on Thursday. The chip giant posted a third quarter adjusted loss of $0.46 per share due to impairment charges, but revenue of $13.28 billion surpassed analyst expectations of $13 billion. However, it's the guidance that has investors cheering. Intel expects Q4 revenue to be between $13.3 billion and $14.3 billion compared to the $13.6 billion Wall Street was expecting.

Intel CEO Pat Gelsinger describes the charges as "accounting charges that really don't affect the business in any way. They're not cash." The two charges Gelsinger did highlight were those related to severance, part of the company's bid to trim costs, and equipment impairments.

In the interview with Yahoo Finance Executive Editor Brian Sozzi, Gelsinger points to some of the things that are working in Intel's favor, such as the advent of the AI PC and the "meaningful" deal with Amazon Web Services to produce chips. He adds that he speaks with some of the big hyperscalers “all the time” and that the company is “pursuing many Foundry opportunities across the hyperscale customers and exploring additional opportunities for customized versions of our products.”

Intel is due to receive billions in government funding from the CHIPS Act to expand its manufacturing capabilities in the US. Gelsinger says the funding is "critical" but that he is "disappointed by the time that it's taken to get done. It's well over two years since the CHIPS Act passed. And over that period, I've invested $30 billion in US manufacturing and we've seen $0 from the CHIPS grants. This has taken too long. We need to get it finished."

Overall, Gelsinger says "This was a critical quarter for Intel. The major restructuring efforts that we've largely finished this quarter. We'll say the second phase of the transformation as we move from getting back in the game and we invested heavily in capacity and technology development and products that were competitive. Now it's time for us to focus on having the financial and shareholder returns associated with those heavy investments of the last three and a half years"

Watch the video above to hear what Gelsinger has to say about receiving outside funding to support its Foundry business and a reported misstep involving Taiwan Semiconductor Manufacturing Company (TSM).

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This post was written by Stephanie Mikulich.