JHVEPhoto Intel (NASDAQ:INTC) shares crashed more than 20% in after hours trading, after the company reported a weaker than expected Q2 print, disappointing against Wall Street estimates on both topline and earnings. Notably, revenue in the June quarter fell YoY, while GAAP EPS came in at a barely profitable $0.02 per share (GAAP EPS was negative). In addition, guidance for Q3 came in worse than what analysts projected, at $12.5 to $13.5 billion. Responding to the disappointing earnings print, management an ...

Intel Corporation (INTC) reported lackluster second-quarter 2024 results owing to soft demand trends and stiff export restrictions that hindered top-line growth. Despite solid traction from its IDM 2.0 (integrated device manufacturing) strategy, margins were significantly affected by an accelerated ramp-up of AI PC, charges related to non-core businesses and unused capacity, unfavorable product mix and competitive pricing by rivals. Consequently, both the top and bottom lines missed the respective Zacks Con ...

Intel Corporation (NASDAQ: INTC), once a dominant force in the semiconductor industry, is facing intense scrutiny from financial analysts following disappointing second-quarter earnings and a challenging profit forecast. As Intel navigates strategic hurdles and a rapidly changing market landscape, several leading financial institutions have drastically lowered their price targets for INTC stock, reflecting growing concerns about its future performance.Analysts’ INTC stock downgrades are a grim consensusSusq ...

Klaus Vedfelt/DigitalVision via Getty Images Being a contrarian-minded investor, the thought of a value play on beleaguered Intel Corporation (NASDAQ:INTC) (NEOE:INTC:CA) has crossed my mind on several occasions. At one point, I made a profitable short-term trade on the Long side. I've also written a few out-of-the-money (OTM) put options on the ticker this year. I came through unscathed in all cases. I was tending to sell calls with strikes in the high 20s whenever Intel reverted down to the ~$30 level. Lo ...

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Amid weak pre-market price performance of other big stocks, including Amazon (NASDAQ: AMZN) and Opendoor Technologies (NASDAQ: OPEN), the shares of American multinational corporation and technology company Intel (NASDAQ: INTC) have followed suit in what might be their largest dip in 24 years.As it happens, the price of Intel stock has dropped over 20% in pre-market, which is the culmination of the relatively poor performance in the past five days, adding up to the 20.51% decline, as well as accumulating a l ...

Pat Gelsinger, chief executive officer of Intel Corp., speaks during the Computex conference in Taipei, Taiwan, on Monday, June 4, 2024. Gelsinger took the stage at the Computex show in Taiwan to talk about new products he expects will help turn back the tide of share losses to peers, including AI leader Nvidia Corp. Photographer: Annabelle Chih/Bloomberg via Getty Images Global semiconductor stocks fell on Friday after a lackluster set of results from U.S. chip firm Intel sent its shares cratering, and a g ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: The symbol for Intel appears on a screen at the Nasdaq MarketSite, on Oct. 1, 2019 in New York. Intel Corp. Intel reports earnings on Thursday, Aug. 1, 2024. Credit: AP Photo/Richard Drew, File Chipmaker Intel says it is cutting 15% of its huge workforce—about 15,000 jobs—as it tries to turn its business around to compete with m ...

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]