It’s official: everybody on the planet hates Intel (NASDAQ:INTC) now. I’m exaggerating, but the tide of sentiment has certainly turned against Intel. This isn’t your cue to panic-sell Intel stock, though. If anything, you should relish the buying opportunity.This is especially true if you call yourself a “buy low, sell high” or contrarian type of investor. When sentiment gets ultra-pessimistic and all of the terrible news is already in the public’s consciousness, it’s time to pounce. You can thank me later ...

Investment Rating - The report does not explicitly provide an investment rating for Intel (INTC) [1][2][3] Core Views - Intel's Q2 2024 revenue was $12.83 billion (YoY -1%, QoQ +1%), below market expectations of $12.98 billion [5] - Non-GAAP gross margin was 38.7% (YoY -1.1pct, QoQ -6.4pct), and Non-GAAP EPS was $0.02, significantly below the market expectation of $0.10 [5] - The company's profitability was impacted by higher costs related to AI PC production, unfavorable product mix, and increased price competition [6] - Intel plans to cut costs by over $10 billion by 2025, including reducing headcount by more than 15% [8][9] - The company expects Q3 2024 revenue to be between $12.5 billion and $13.5 billion, below the market expectation of $14.38 billion [21] Business Segments Summary Intel Product Business - Revenue for Intel's product business in Q2 2024 was $11.8 billion, up 4% YoY, with an operating profit of $2.9 billion, up 16% YoY [10] - Client Computing Group (CCG) revenue was $7.41 billion (YoY +9%, QoQ -1%), driven by AI PC growth, partially offset by export restrictions in China [11] - Data Center and AI Group (DCAI) revenue was $3.05 billion, down 3% YoY, with expectations of sequential growth in H2 2024 due to improved demand for traditional servers [12] - Network and Edge Group (NEX) revenue was $1.34 billion, down 1% YoY, with stable performance and 10% YoY growth in H1 2024 [14] Intel Foundry Business - Foundry revenue in Q2 2024 was $4.32 billion (YoY +4%, QoQ -1%), driven by Intel 7, Intel 4, and Intel 3 wafer shipments [15] - Foundry operating loss was $2.8 billion (YoY -47%, QoQ -12%), with continued pressure expected in Q3 due to high costs from pre-EUV nodes [15] - Intel is progressing with its "4 nodes in 5 years" strategy, with Intel 18A expected to be ready for production by the end of 2024 [17] Other Businesses - Mobileye revenue was $440 million (YoY -3%, QoQ +84%), with an operating margin of 16.4%, but the company lowered its H2 2024 revenue and profit guidance due to challenges in China [18] - Altera revenue was $361 million (YoY -57%, QoQ +6%), with an operating margin of -6.9%, but the company expects double-digit sequential revenue growth in H2 2024 [20] Cost-Cutting and Strategic Plans - Intel plans to reduce operating expenses to $20 billion in 2024 and $17.5 billion in 2025, with a focus on streamlining operations and reducing headcount [9] - Capital expenditure for 2024 is expected to be between $25 billion and $27 billion, down more than 20% from initial guidance, reflecting weaker demand expectations [9] - The company will suspend dividends starting from Q4 2024 to prioritize liquidity for strategic investments [9] Future Outlook - Intel expects to achieve positive adjusted free cash flow by 2025, driven by cost reductions and improved capital efficiency [24] - The company is optimistic about its long-term strategy, including the transition to Intel 18A and the growth of AI PC and data center markets [25][26] - Intel aims to achieve a 60% gross margin and 40% operating margin by the end of the decade, supported by its new operating model and cost discipline [34]

Which of these out-of-favor chipmakers is a better buy right now?Intel (INTC -1.39%) and Arm Holdings (ARM 2.66%), two of the bellwethers of the semiconductor sector, recently plummeted after their latest earnings reports. Intel missed analysts' estimates on the top and bottom lines, suspended its dividend, and announced plans to lay off 15% of its global workforce to cut costs. Those disastrous developments cause its stock to sink 26% to its lowest levels in over a decade on Aug. 2.Arm exceeded Wall Street ...

Intel Corporation (INTC) reported lackluster second-quarter 2024 results owing to soft demand trends and stiff export restrictions to China that led to top-line contraction. Both the top and bottom lines missed the respective Zacks Consensus Estimate. Despite solid traction from its IDM 2.0 (integrated device manufacturing) strategy, margins were significantly affected by an accelerated ramp-up of AI PCs, high operating costs, unfavorable product mix and pricing pressures by rivals. Consequently, management ...

Despite being on the back foot since the first week of January, shares of Intel Corporation NASDAQ: INTC took things to a whole new level last week. For investors, this will be a disappointing, though perhaps not all that surprising, turn of events. Intel TodayINTCIntel$20.40 +0.29 (+1.44%) 52-Week Range$19.29▼$51.28Dividend Yield2.45%P/E Ratio21.25Price Target$32.92Add to WatchlistThe tech titan, if it can still be called that, considering its shares are back trading at 1997 levels, has long struggled to k ...

The chipmaker's stock has taken a deep dive, increasing the value of its shares.Intel (INTC -6.38%) has hit more than a few speedbumps over the last decade. The company was once the most prominent player in chips, a go-to supplier for many tech firms, and a leader in manufacturing. Yet the rising competition in its space over the last decade has left it struggling to stay relevant, and its stock is down by 40% since 2014. However, the company has gradually begun to turn things around in the last year. In re ...

Microchip giant Intel (NASDAQ:INTC) just delivered one of the worst quarterly financial results ever, sending Intel stock plummeting. The company’s share price plunged 26% in one day and registered its worst performance in 50 years. Intel stock is now trading at its lowest level since 2013. The earnings report was so bad that Intel dragged the entire chip sector down with it. Mighty Nvidia (NASDAQ:NVDA) fell 2% on the day. With INTC stock now changing hands at $21 a share, some investors might be tempted to ...

Intel's situation might get worse before it gets better...Intel's (INTC -6.38%) CEO Pat Gelsinger said he was disappointed by the chipmaker's second-quarter results -- and he wasn't the only one. The market sanctioned the company's performance, bringing the stock down 30% in one trading session last week. In the earnings report, Intel fell short of analysts' expectations, predicted a weak period ahead, and announced a $10 billion cost-cutting plan that includes major job cuts.This comes as the company, whic ...

Signage with logo at the Silicon Valley headquarters of computer hardware manufacturer Intel, Santa ... [+] Clara, California, August 17, 2017. (Photo via Smith Collection/Gado/Getty Images).Getty ImagesIntel stock (NASDAQ: INTC) posted a weaker-than-expected set of Q2 2024 earnings last week, and provided a tough outlook for Q3, guiding revenue of $12.5 billion to $13.5 billion, well below estimates of over $14 billion, as it continues to lose market share in both the PC and server space. Following the tou ...

Core View - Intel's Q2 earnings report and guidance indicate significant challenges, including declining margins, weak revenue growth, and high capital expenditures, leading to aggressive cost-cutting measures and a shift in focus to future products like Panther Lake and Clearwater Forest [2][4][6][7] Financial Performance - Q2 revenues were in-line, but gross margin of 38.7% missed guidance by nearly 5%, resulting in EPS of $0.02 vs. guidance of $0.10 [2] - Q3 revenue guidance is flat, with gross margin guidance at 38% and a projected loss on a non-GAAP basis [2] - Data Center business (DCAI) is in serious decline, while Client Computing Group (CCG) is the only segment holding the fort [2] - Foundry business is highly inefficient, generating large losses and consuming tens of billions in capex, with competitiveness unlikely before 2026 [2] Margin Challenges - Q3 margins are under pressure due to unfavorable product mix, accelerated process moves, underutilization penalties, higher non-core business charges, and more competitive pricing [3] - Lunar Lake CPU, set for late Q3 launch, is expensive to produce due to TSMC-manufactured chiplets and integrated memory with 0% markup, further pressuring margins [3] - Intel has shifted its goal of achieving 60% margins to 2026 [3] Near-Term Guidance - Q3 guidance is weak, with modest inventory digestion in CCG and below-forecast trends in DCAI, NEX, Altera, and Mobileye [4] - Intel is expected to slip behind AMD in data center revenues in Q3, despite improved server demand [4] - Q4 revenue growth is projected at the high-end of a 0% to 5% range, with Gaudi 3 expected to contribute $500M in accelerator revenues in 2024 [4] Cost-Cutting Measures - Intel announced over 15% headcount reduction, comprehensive spending cuts, and suspension of dividends starting Q4 to reduce opex and capex [6] - The company may need to raise funds from the sale of Mobileye and Altera to de-lever its balance sheet [6] Future Prospects - Intel's hopes for recovery rest on the 18A process, with Panther Lake and Clearwater Forest products expected to launch in H2 2025 and reach high volume production by 2026 [7] - The 18A process is claimed to be comparable to TSMC's N2, but doubts remain about its competitiveness [7] - Any delays or missteps in the 18A process could lead to disastrous financial outcomes [7] Industry Context - Intel's struggles reflect its inability to adapt to the changing semiconductor industry, with a continued focus on fabs rather than product innovation [8] - The company has missed the GPU train, and its debt levels are becoming a concern, with the stock likely to face further declines [8]