Intel Reports Earnings Today. What to Expect.
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As of the close of trading on Wednesday, Intel stock was down 14% over the past 12 months.
David Paul Morris/Bloomberg
Intel will be the first major computer-chip maker to report its second-quarter results after the market closes. Wall Street is worried about the risk that surging demand for artificial intelligence chips could divert funds away from the company’s traditional processors.
According to FactSet, the consensus call among analysts is that
Intel
(ticker: INTC) will report revenue of $12.1 billion and an adjusted loss of 4 cents a share for the June quarter. Analysts’ estimate for the current quarter’s revenue is $13.2 billion, with EPS of 16 cents.
Earlier this month, Susquehanna analyst Christopher Rolland reaffirmed his Neutral rating for Intel stock, citing the risk from rising interest in AI. The analyst is concerned that more spending on data-center infrastructure may shift money to graphics processing unit chips for artificial intelligence, leaving less for Intel’s server processors.
“AI remains a mixed story for Intel…we remain cautious on Intel’s server competitiveness for the next several years,” he wrote. “We fear AI server GPU purchasing could crowd out wallet share for CPUs [from Intel].”
Last week,
Taiwan Semiconductor Manufacturing
Chairman Mark Liu also said they saw signs AI-related demand was taking sales away from traditional server chips.
Intel shares rose 0.8% to $34.36 on Wednesday. The stock has fallen 14% over the past 12 months.
Write to Tae Kim at tae.kim@barrons.com
