Intel(US:INTC) Haitong Securities International·2025-07-25 06:57Investment Rating - The report does not explicitly provide an investment rating for the company or industry Core Insights - Intel reported Q2 2025 revenue of $12.9 billion, exceeding market expectations of $11.9 billion, driven by strong performance in client computing and data center businesses [1][7] - Non-GAAP EPS was -$0.10, below the expected $0.01, primarily due to $800 million in equipment impairments and restructuring charges [1][7] - For Q3 2025, Intel provided revenue guidance of $12.6–$13.6 billion, with a midpoint of $13.1 billion, indicating a 1.6% QoQ growth [1][4] Summary by Sections Revenue Performance - Q2 2025 revenue grew by 1.5% QoQ and 0.2% YoY, with the Intel Products division contributing $11.8 billion, a 1% QoQ increase [2][8] - Client Computing Group (CCG) revenue increased by 3% QoQ, benefiting from the PC refresh cycle and AI PC penetration [2][8] - Data Center and AI (DCAI) revenue declined by 5% QoQ but still exceeded expectations due to strong demand for AI server CPUs [2][8] Profitability Metrics - Non-GAAP gross margin for Q2 2025 was 29.7%, adjusted to 37.5% when excluding impairment charges [3][8] - Operating income was a loss of $3.2 billion, with a margin of -24.7%, and net income was a loss of $2.9 billion, translating to a net margin of -22.7% [3][8] Future Guidance - Q3 2025 revenue is expected to be between $12.6 billion and $13.6 billion, with a midpoint of $13.1 billion, representing 3.4% QoQ and 2.1% YoY growth [4][10] - Gross margin for Q3 2025 is projected at 36%, considering a higher mix of outsourced products and initial production costs [4][10] - Full-year 2025 capital expenditure is projected at $18 billion, with net capital expenditure guidance between $8 billion and $11 billion [4][10]