Intel stock rises on Q2 revenue beat, plans to cut 15% of workforce
Intel also offered an upbeat Q3 revenue forecast of between $12.6 billion and $13.6 billion. Wall Street was expecting $12.6 billion.
The chipmaker's stock rose more than 2% following 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 an adjusted loss per share of $0.10 on revenue of $12.8 billion. Wall Street was anticipating adjusted 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.
Intel said it took an $800 million non-cash impairment and accelerated depreciation charges related to "excess tools with no identified re-use" and a roughly $200 million one-time period costs for Q2. The company has also cancelled planned projects in Germany and Poland and slowing construction of its facility in Ohio.
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 $11.8 billion versus expectations of $10.9 billion.
Intel is dealing with increased competition from both AMD (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 $4.4 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
Jim Cramer on Intel CEO: 'He Totally Understands Everything'
Intel Corporation (NASDAQ:INTC) is one of the stocks Jim Cramer shared his views on. A caller asked Cramer's take on the company and its foundry, and he replied: 'Okay, the foundry was ill-advised. You're right, we need them in the country, but they are not necessarily profitable, and Intel, the previous CEO, was spending far too much on them. We have a new CEO at Intel. The CEO's name is Lip-Bu Tan, and he totally understands everything I just mentioned about foundries. He did make me feel that a turn is not yet at hand; it's still a little too early. If you started buying here, I think you're going to be able to just kind of break even versus so many others, including my favorite NVIDIA.' Photo by Slejven Djurakovic on Unsplash Intel (NASDAQ:INTC) develops and supplies computing products, including processors, chips, and hardware solutions for AI, networking, and storage. Moreover, the company provides semiconductor technologies and platforms supporting cloud, edge, and autonomous systems. While we acknowledge the potential of INTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
4 hours ago
- Yahoo
Will Advanced Micro Devices Join the Trillion-Dollar Club by 2030?
Key Points AMD's growth has been picking up steam in recent quarters. OpenAI CEO Sam Altman sees a lot of promise in the company's new chips. AI-related revenue could top tens of billions of dollars in the future, according to CEO Lisa Su. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD), also known as AMD, has been one of the hottest chip stocks in 2025, rising by 48% since the start of the year. It has been outperforming rival Nvidia, which is up around 33% over the same time frame (as of July 31). But in terms of valuation, AMD is well behind its key rival. While Nvidia recently topped the $4 trillion mark in valuation, AMD isn't even near $1 trillion. With a lower valuation and still a lot of growth on the horizon, is it only a matter of time before it joins the trillion-dollar club? And can it get there by 2030? AMD may be on the cusp of some tremendous growth One of the reasons the company may be due to climb in value significantly -- not just this year but in the future -- is that its growth is finally starting to accelerate. For a while, it looked as though the chipmaker was falling too far behind Nvidia to convince investors that it's a serious player in the artificial intelligence (AI) chip market. But with the launch of new AI chips and sales starting to take off, it's winning over more growth seekers in the process. The company's new MI400 chips even have the endorsement of OpenAI CEO Sam Altman, who is impressed with their specifications and plans to use the chips. AMD's CEO Lisa Su sees a lot of room for the company to take off, noting that its data center AI business generated $5 billion in sales last year and that in the coming years, it will grow to "tens of billions of dollars of annual revenue." If that forecast ends up being correct, there's no doubt that AMD's value will rise sharply. Can AMD quadruple in value? Its market cap currently sits at around $280 billion. For it to reach $1 trillion, it would need to nearly quadruple in value from where it is today. That's a big ask for the business, especially given that it trades at an astounding 131 times its trailing earnings. But there's a bullish case to be made for why it can rally that much, despite it looking like a tall task. First, as it scales up its AI business, the bottom line should improve. In fact, while the stock may look expensive at first glance, it's trading at a price/earnings-to-growth multiple (PEG) of only 0.8. PEG is based on analyst projections of future growth, and a multiple of 1 indicates a good buy, and anything less than that suggests it's cheap, which AMD looks to be. Second, while Nvidia has soared by 1,600% in the past five years due to the AI hype, AMD's stock has risen at an impressive but far more modest rate of 130%. I'm not suggesting it should have been doing as well as Nvidia, but investors appear to have been overlooking it, at least to some extent. As customers potentially pivot to cheaper AI chips from AMD (and its growth rate remains high), it could conceivably be the better chip stock from here on out. It's outperforming Nvidia this year, and this could be the beginning of a longer-term trend. A lot still depends on the success of its new AI chips, but I can see a path for it to hit a $1 trillion valuation. If the company's sales do indeed take off, as Su and analysts expect them to, then there could be a lot of room for the stock to run higher. I do think AMD will join the trillion-dollar club; it's just a matter of when. If AI chip demand remains strong, I don't think it's unreasonable for it to happen within the next five years. Is the stock a no-brainer? The stock looks to be on a strong trajectory, and I do believe it's a no-brainer buy at this stage. The company's improved results are lining up with the hype from management and the excitement from Altman. The stock has largely been overlooked in recent years, at least in comparison with Nvidia, and now may finally be AMD's time to shine. Even if it doesn't quite get to $1 trillion in the next five years, this still looks like a fantastic growth stock to buy right now. Should you buy stock in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Will Advanced Micro Devices Join the Trillion-Dollar Club by 2030? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
16 hours ago
- Yahoo
AMD Stock Gets Bullish Re-Rating as Export Ban Relief Sparks $800M Upside
Advanced Micro Devices, Inc. (NASDAQ:) is one of the . On July 30, Susquehanna analyst Christopher Rolland raised the price target on the stock to $210 from $135 and kept a 'Positive' rating on the shares. After previewing Q2 results, the analysts anticipate generally in-line to slightly better results on the back of stronger PC sales. This is because Intel acknowledged that tariff-related pull-ins continued in 2Q. The firm has also highlighted that AMD boasts server business strength. It has been gaining market share in EPYC data center CPUs. A major factor behind the upgraded outlook on AMD is that the government announced in July that it would review and likely renew AMD's license application for exporting MI308 AI chips to China. A close up of a complex looking PCB board with several intergrated semiconductor parts. Provided this occurs, it would help in reversing the previously anticipated $1.5 billion negative revenue impact from China restrictions. As of now, the firm expects AMD to recover an estimated $800 million in revenue during the second half of 2025 from the potential China sales. It also highlighted that much of the $800 million in MI308 inventory that AMD was planning to write down may now be sold at near-zero cost. Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Must-Watch AI Stocks on Wall Street and Disclosure: None. Sign in to access your portfolio
