Key TakeawaysIntel shares plunged 19% in extended trading Thursday after the chipmaker reporter results that missed Wall Street’s estimates, issued soft guidance and unveiled a $10 billion cost-cutting plan that includes slashing 15% of its workforce. Monitor these crucial chart levels.The stock has continued to trend sharply lower on above-average volume since breaking down from an ascending channel in April.Intel shares may attract bargain hunters at historically significant price levels including $26, $2 ...

Financial Data and Key Metrics - Q2 revenue was $12.8 billion, down 1% YoY and up 1% sequentially [29] - Q2 gross margin was 38.7%, below expectations due to accelerated AI PC ramp, higher wafer costs, and unfavorable product mix [29][30] - Q2 operating cash flow was $2.3 billion, up $3.5 billion sequentially due to better working capital [31] - Adjusted free cash flow for Q2 was $8.2 billion, driven by $11.5 billion in grants and partner contributions [31] - Intel Products revenue grew 4% YoY to $11.8 billion, while Intel Foundry revenue grew 4% YoY to $4.3 billion [31][32] - Intel Foundry operating loss was $2.8 billion, with losses expected to continue in Q3 [33] Business Unit Performance - **Client Computing Group (CCG):** Revenue grew 9% YoY, driven by AI PC ramp, with Intel Core Ultra volume more than doubling sequentially [20][31] - **Data Center and AI (DCAI):** Revenue was flat sequentially and down 3% YoY, with expectations for modest growth in H2 2024 [31] - **Network and Edge (NEX):** Revenue was flat sequentially and YoY, but grew 10% YoY excluding telco inventory digestion [32] - **Mobileye:** Revenue improved 84% sequentially to $440 million, but H2 guidance was lowered due to challenges in China [34] - **Altera:** Revenue grew 6% sequentially to $361 million, with double-digit growth expected in H2 [34] Market and Strategic Focus - AI PC market is expected to grow from less than 10% today to over 50% by 2026, with Intel shipping over 15 million AI PCs since December 2023 [8][20] - Lunar Lake, the next-gen AI PC, achieved production release ahead of schedule and is expected to drive device refresh in H2 2024 [21] - Intel Foundry is targeting process leadership with Intel 18A, expected to be manufacturing-ready by end of 2024, with production starting in H1 2025 [15][16] - Foundry Services revenue more than doubled sequentially, driven by advanced packaging revenue [32] Management Commentary on Environment and Outlook - Management acknowledged disappointing Q2 profitability but emphasized progress on product and process roadmaps [7] - The company is targeting over $10 billion in cost reductions by 2025, including a 15% headcount reduction by end of 2025 [9][10] - Q3 revenue is expected to be $12.5 billion to $13.5 billion, with gross margin around 38% and EPS of -$0.03 [36] - Long-term targets include 60% gross margin and 40% operating margin by the end of the decade [42] Other Key Information - The company suspended its dividend starting Q4 2024 to prioritize liquidity for strategic investments [13] - Intel is transitioning to a more normalized cadence of node development, with Intel 14A and 10A already underway [19] - The company is focusing on capital efficiency, reducing 2024 gross CapEx to $25 billion-$27 billion, down over 20% from initial plans [11][38] Q&A Session Summary Question: Challenges and Plan B for Intel's recovery [44] - Management acknowledged the challenges but emphasized progress on product competitiveness and cost reductions, with a focus on building a sustainable financial model [45][46] Question: Impact of restructuring on R&D and external foundry opportunities [47] - The company remains confident in its strategy, with no significant impact on CHIPS Act funding or long-term external foundry revenue targets [48][49] Question: Structural changes and financial targets [53] - Intel is focusing on efficiency and capital optimization, with no changes to long-term financial targets, but adjustments to near-term growth expectations [57] Question: Gross margin outlook beyond 2025 [64] - Management expects gross margins to improve significantly in 2026 as more tiles are brought in-house, with Lunar Lake being a near-term headwind and Panther Lake a tailwind [65][68] Question: Server roadmap competitiveness [72] - Intel's server roadmap, including Sierra Forest and Granite Rapids, is showing positive early feedback, with Clearwater Forest expected to be a strong product in 2025 [73][75] Question: Client market dynamics and inventory [98] - Intel is confident in its AI PC leadership and expects a refresh cycle in the enterprise market, with Lunar Lake and Panther Lake strengthening its position [101] Question: Foundry customer progress on 18A and 14A [102] - Intel has $15 billion in committed foundry deals, with significant activity in advanced packaging and positive indicators for 18A following the release of the PDK [103][104]

DMP/E+ via Getty Images The numbers just keep getting worse for Intel Corporation (NASDAQ:INTC). The giant chip company missed the AI GPU transition and is too focused on building a foundry business to catch up, despite aggressively spending on new foundries. My investment thesis remains ultra-bearish on Intel following another bad quarter and the elimination of the once-important dividend. Source: Finviz Another Major Disappointment Intel not only reported a Q2 '24 miss on both the bottom and top line, but ...

Chipmaker Intel Corp. is cutting 15% of its massive workforce — about 15,000 jobs — as it tries to turn its business around to compete with more successful rivals like Nvidia and AMD.In a memo to staff, Intel CEO Pat Gelsinger said Thursday the company plans to save $10 billion in 2025. “Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote in the memo published to Intel’s website. “Our revenues have not grown as expected – and we’ve ...

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Key TakeawaysIntel shares plummeted in extended trading Thursday after the company posted a wider-than-expected loss. CFO David Zinsner said gross margin headwinds tied to Intel's AI PC product and elevated costs negatively affected second-quarter results. The chipmaker said it plans to lay off 15% of its workforce as part of a $10 billion cost-savings plan. Intel (INTC) shares plunged in extended trading Thursday after the company posted a wider-than-expected loss and said it would lay off 15% of its workf ...

D-Keine Article Thesis Intel Corporation (NASDAQ:INTC) reported quarterly earnings results that looked very weak. The company continues to battle company-specific issues and cannot benefit from the ongoing AI boom in a big way. The post-earnings price slump seems justified due to the disappointing performance Intel delivered over the last couple of months. Past Coverage I have written about Intel here on Seeking Alpha in the past, most recently in early 2023 when Intel decided to cut its dividend. Back ...

Intel stock hit the skids after announcing it will slash nearly 17,000 workers and pause its dividend as part of a sweeping cost-cutting plan.  The chipmaker plans to "resize and refocus" its 116,500 workforce in an effort to save $10 billion to combat challenging trends. Intel shares fell nearly 20% in extended trading Thursday.  Ticker Security Last Change Change % INTC INTEL CORP. 29.05 -1.69 -5.50% "Clearly market conditions, some were good and some not so good, and you have to adjust the financial en ...

For the quarter ended June 2024, Intel (INTC) reported revenue of $12.83 billion, down 0.9% over the same period last year. EPS came in at $0.02, compared to $0.13 in the year-ago quarter.The reported revenue represents a surprise of -0.70% over the Zacks Consensus Estimate of $12.92 billion. With the consensus EPS estimate being $0.10, the EPS surprise was -80.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their nex ...

Intel (INTC) came out with quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -80%. A quarter ago, it was expected that this world's largest chipmaker would post earnings of $0.13 per share when it actually produced earnings of $0.18, delivering a surprise of 38.46%.Over the last four quarters, the co ...