Intel shares rise on Q2 revenue beat, plans to cut 15% of workforce
Shares of the chip maker rose more than 2% following the report after the report.
Shares of Intel are off 28% over the last 12 months, though up 13% year to date. Intel's market capitalization as of Thursday was $98 billion. Rival AMD's (AMD) market cap tops out at $262 billion. AI leader Nvidia (NVDA) dwarfs both companies with a market cap north of $4 trillion.
For the quarter, Intel saw adjusted loss per share (EPS) of $0.10 on revenue of $12.8 billion. Wall Street was anticipating Adj. EPS of $0.01 on revenue of $11.8 billion, based on Bloomberg's analyst consensus data.
The company reported adjusted EPS of $0.02 and $12.8 billion in revenue in the same period last year.
Read more: Live coverage of corporate earnings
Intel's Products business, which includes sales of its laptop and desktop CPUs and data center and AI chips brought in $7.9 billion versus expectations of $10.9 billion.
Intel is dealing with increased competition from both AMD and the rising threat from Qualcomm (QCOM), which is pushing further into the PC chip space with its Snapdragon X Plus and X Elite chips.
Intel's still-nascent Foundry business generated $4.2 billion in revenue versus expectations of $4.3 billion, up 2%. The division, which is meant to produce chips for third-party customers using Intel's processor technology, is still struggling to make meaningful headway.
Intel previously announced it reached agreements to build chips for Microsoft and Amazon using its 18A technology, which former CEO Pat Gelsinger championed to help grow the company's manufacturing segment.
But according to Reuters, Tan is considering promoting its next-generation 14A technology to customers. That could mean Intel would face a massive write-down on 18A.
However, Intel would still continue to use 18A for its own internal products, including CPUs for consumer and enterprise devices. And an Intel spokesperson said the company had no comment on the matter.
Tan has already undertaken or is exploring a number of cost-cutting measures at Intel. According to The Oregonian, the company is shuttering its automotive business, outsourcing marketing jobs, and laying off factory workers.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X/Twitter at @DanielHowley.
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