Core Viewpoint - Intel's stock fell 9% following the announcement of significant cuts to foundry costs, overshadowing a better-than-expected earnings report, raising concerns about the future of its chip manufacturing business [1][4]. Financial Performance - Intel reported adjusted earnings of 10 cents per share, exceeding the average analyst estimate of 1 cent, and provided a sales forecast for Q3 that also surpassed expectations [1]. - The company's net loss widened to $2.9 billion, or 67 cents per share, compared to a loss of $1.61 billion, or 38 cents per share in the same period last year [6]. Strategic Decisions - CEO Lip-Bu Tan indicated that the upcoming chip manufacturing process, 14A, will be developed based on confirmed customer commitments, stating there will be "no more blank checks" [2]. - Intel may "pause or discontinue" its foundry business if it fails to secure a customer for its next technology cycle [2][3]. - The company is halting chip facility projects in Germany and Poland and is slowing production at its Ohio plant, indicating a strategic shift in operations [4]. Market Position and Challenges - Intel's stock has lost 60% of its value in 2024, marking its worst year on record, largely due to its struggles in the artificial intelligence market, which is currently dominated by Nvidia [4]. - Analysts expressed concerns about the uncertainty surrounding Intel's product roadmaps and customer adoption due to the lack of external foundry commitments [5]. Workforce and Operational Changes - The company has implemented layoffs that will reduce its workforce by 15%, resulting in approximately 75,000 employees by the end of the year [6]. - CEO Tan acknowledged that previous investments were made without adequate demand, leading to a fragmented and underutilized factory footprint [6].

Core Insights - Intel reported mixed second-quarter 2025 results, missing earnings estimates with a loss per share of 10 cents compared to the Zacks Consensus Estimate of earnings of 1 cent and year-ago earnings of 2 cents. Revenues were flat year over year at $12.9 billion, slightly exceeding the estimated $11.87 billion [1][3] - The company provided an optimistic revenue outlook for the current quarter, projecting revenues between $12.6 billion and $13.6 billion, with the Zacks Consensus Estimate at $12.66 billion [4] - Intel is undergoing a restructuring process, cutting approximately 24,000 core jobs (15% of workforce) to streamline operations and focus on AI-centered products, aiming for $17 billion in cost savings for 2025 [4] ETF Focus - Investors are encouraged to monitor ETFs with significant allocations to Intel, including REX FANG & Innovation Equity Premium Income ETF (FEPI), iShares Edge MSCI USA Value Factor ETF (VLUE), Themes Generative Artificial Intelligence ETF (WISE), iShares Semiconductor ETF (SOXX), and Invesco PHLX Semiconductor ETF (SOXQ) [2] - FEPI holds Intel in the seventh position with a 6.7% share, has an asset base of $490.8 million, and charges 65 bps in annual fees [5] - VLUE features Intel as the second-largest holding at 4.2% of assets, with an asset base of $6.8 billion and charges 15 bps in annual fees [6] - WISE includes Intel as the tenth largest holding at 3.9%, with an asset base of $32.8 million and charges 35 bps in annual fees [7] - SOXX lists Intel as the ninth firm with a 4% share, has an asset base of $13.7 billion, and charges 35 bps in annual fees [8][9] - SOXQ ranks Intel seventh with a 4.04% share, has an asset base of $505.2 million, and charges 19 bps in annual fees [10]

Shares of Intel Corp INTC tanked in early trading on Friday, after the company on Thursday reported disappointing earnings for the second quarter.Here are some key analyst takeaways.BofA Securities analyst Vivek Arya reiterated a Neutral rating and price target of $25.Rosenblatt Securities analyst Kevin Cassidy reaffirmed a Sell rating and price target of $14.Benchmark analyst Cody Acree maintained a Hold rating on the stock.Needham analyst Quinn Bolton reiterated a Hold rating.Check out other analyst stock ...

Retirement is complicated and you only get once chance to do it right. Don't miss out because you didn't know what was out there.The Retirement Forum provides actionable ideals, a high-yield safe retirement portfolio, and macroeconomic outlooks, all to help you maximize your capital and your income. We search the entire market to help you maximize returns.Intel Corporation (NASDAQ: INTC ) recently announced its Q2 earnings , falling back below a $100 billion market capitalization. The company recorded its w ...

Core Viewpoint - Intel's second-quarter earnings report reflects a complex but ultimately positive narrative, indicating that the company's restructuring strategy is on track despite significant short-term costs [2][9]. Financial Performance - Q2 revenue reached $12.9 billion, flat year-over-year, but exceeded both Intel's guidance and Wall Street expectations [3]. - The Data Center and AI Group (DCAI) segment saw a 4% year-over-year revenue increase, while the Client Computing Group (CCG) experienced a slight 3% decline [4]. - The non-GAAP loss of $0.10 per share was primarily due to planned one-time charges, including $1.9 billion in restructuring costs and $800 million in asset impairments, viewed as investments for future efficiency [5]. Forward-Looking Guidance - The forecast for Q3 non-GAAP gross margin is approximately 36.0%, a significant improvement of over 600 basis points from Q2's 29.7% [6][7]. - This guidance indicates that cost-cutting measures are beginning to positively impact profitability, with gross margin serving as a key measure of manufacturing efficiency and pricing power [7]. Strategic Execution - The earnings report serves as a scorecard for management's execution, demonstrating that Intel is delivering on its strategic promises [8]. - The company has completed most of its planned 15% workforce reduction and is on track to meet long-term operating expense targets for 2025 and 2026 [11]. - Intel is halting planned factory projects in Germany and Poland and slowing construction in Ohio to align spending with market demand, part of its Smart Capital strategy [11]. Balance Sheet and Technology - In July, Intel strengthened its balance sheet by selling 57.5 million Mobileye shares, adding $922 million in cash [11]. - Key product milestones were achieved, including the start of production for the advanced Intel 18A process and confirmation of the first Panther Lake processors for shipment this year [11].

Core Insights - The article emphasizes the importance of building robust and diversified investment portfolios to preserve and increase wealth over time [1]. Group 1: Company and Industry Focus - The Pragmatic Investor is designed to guide investors of all levels through global macro, international equities, commodities, tech, and cryptocurrencies [1]. - The investment group is led by James Foord, an economist with a decade of experience analyzing global markets [1]. - The features of The Pragmatic Investor include a portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for discussions [1].

Group 1 - Intel Corp's stock has dropped 8.6% to $20.70 following an adjusted second-quarter loss of 10 cents, contrasting with estimates of a 1 cent profit, despite an otherwise positive report indicating the completion of most recent layoffs [1] - The stock has struggled to surpass the $24 resistance level, while finding support near the $22 mark, and despite a projected 12% gain for 2025, it remains down 28% year-over-year [2] - Analysts are largely bearish, with 38 out of 39 brokerage firms recommending a "hold" or worse, and short interest has increased by 24% in the last two reporting periods, representing 2.9% of the stock's total float [3]

Core Insights - Intel Corporation reported weaker-than-expected earnings for its second fiscal quarter, primarily due to restructuring costs and a slow-moving reorganization [1] - The company experienced no revenue growth during this period [1] Financial Performance - The earnings report indicated that Intel was significantly impacted by ongoing restructuring efforts [1] - The lack of revenue growth suggests challenges in the company's operational efficiency and market competitiveness [1]

Group 1: Intel Corporation - Intel reported a loss for the second quarter, but sales exceeded estimates, with expected third-quarter revenue ranging from $12.6 billion to $13.6 billion, slightly above the estimate of $12.63 billion [2] - The company anticipates a third-quarter loss of 24 cents per share, compared to estimates of a loss of 18 cents per share [2] - Intel's CEO announced plans to reduce the workforce to 75,000 employees by the end of the year through layoffs and attrition [2] Group 2: Market Reactions - Intel shares fell 5.9% to $21.30 in pre-market trading following the earnings report [3] - Other companies also experienced declines in pre-market trading, including Absci Corporation, which declined 13.7% to $3.03 after announcing a public offering of common stock [5] - AST SpaceMobile, Inc. fell 9.2% to $54.56 after announcing a $500 million private offering of convertible senior notes [5]

Core Insights - Intel Corp. is undergoing a restructuring process under its new CEO, which is expected to lead to short-term challenges before potential improvements [1]. Group 1 - The previous warning indicated that conditions for Intel would deteriorate before showing signs of recovery [1].