What You Need To Know Ahead of Intel's Earnings Report

Key Metric: Revenue Outlook

Investors will apt salary adjacent attraction to Intel's outlook, aft shares tumbled successful nan aftermath of its first-quarter study connected nan chipmaker’s weak gross guidance. Bank of America analysts said astatine nan clip that Intel's second-quarter guidance showed "topline maturation remains lukewarm connected constricted AI exposure," pinch "underutilized manufacturing and elevated costs."

However, Melius analysts suggested earlier this period that nan “AI laggard” could get a boost successful nan 2nd half of nan year, and use from its chips being utilized successful Microsoft devices amid nan tech giant's AI push pinch Copilot+ PCs. The chipmaker whitethorn besides use from seasonal trends successful nan industry, suggesting guidance for nan 3rd 4th could beryllium stronger.

Analysts are projecting third-quarter gross of $14.34 billion, according to statement estimates compiled by Visible Alpha, which would correspond a flimsy summation from nan year-ago period.

Business Spotlight: Foundry Business and AI Gains

Worries astir elevated costs, competition, and slower-than-expected advancement successful its foundry business person each weighed connected sentiment surrounding Intel’s banal this year, though nan chipmaker could beryllium positioned to benefit from maturation successful its information halfway and AI segment arsenic good arsenic authorities support to promote nan semiconductor manufacture wrong nan U.S.

Intel's information halfway and AI conception helped thrust gross gains successful nan first quarter, though analysts noted Intel's top line still depends importantly connected "legacy" products, and foundry gross fell. Intel reported foundry operating losses widened to $2.47 cardinal successful nan first 4th of 2024, raising concerns that it could return longer to standard and break moreover than antecedently anticipated.

Intel shares person mislaid astir 40% of their worth truthful acold this year, astatine $30.83 arsenic of Monday's close.