Latest news with #Intel7
Yahoo
4 days ago
- Business
- Yahoo
Intel Corp (INTC) Q2 2025 Earnings Call Highlights: Revenue Surpasses Expectations Amid ...
Revenue: $12.9 billion, above the high end of guidance. Non-GAAP Gross Margin: 29.7%, impacted by $800 million in non-cash impairment and $200 million in one-time period costs. Non-GAAP EPS: Minus $0.10, excluding charges would have been $0.10. Operating Cash Flow: $2.1 billion. Adjusted Free Cash Flow: Negative $1.1 billion. Cash and Short-term Investments: $21.2 billion. Intel Products Revenue: $11.8 billion, slightly up sequentially. CCG Revenue: Up 3% quarter-over-quarter. DCAI Revenue: Down 5% sequentially. Intel Foundry Revenue: $4.4 billion, down 5% sequentially. Operating Profit for Intel Products: $2.7 billion, 23% of revenue. Intel Foundry Operating Loss: $3.2 billion, down $848 million sequentially. All Other Revenue: $1.1 billion, up 12% sequentially. Q3 Revenue Guidance: $12.6 billion to $13.6 billion. Q3 Gross Margin Guidance: Approximately 36%. 2025 OpEx Target: $17 billion. 2026 OpEx Target: $16 billion. 2025 Gross Capital Investment: Approximately $18 billion. Net CapEx Forecast: $8 billion to $11 billion for 2025. Warning! GuruFocus has detected 7 Warning Signs with INTC. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Intel Corp (NASDAQ:INTC) reported Q2 revenue above the high end of its guidance, reflecting strong demand across its business. The company is making progress on its foundry strategy, focusing on building trust with customers and ensuring high-quality, reliable wafer delivery. Intel Corp (NASDAQ:INTC) is committed to improving its balance sheet, with actions taken to reduce operating expenses and improve execution. The company is focused on launching its Panther Lake SKU by year-end, which is expected to solidify its strong share in the notebook market. Intel Corp (NASDAQ:INTC) is actively engaging with external ecosystem partners to improve yield and performance targets for its Intel 18A technology. Negative Points Headline profitability was impacted by several one-time items and impairments, affecting overall financial performance. The company faces challenges in the high-end desktop market and needs to improve its position in broader hyperscale workloads. Intel Corp (NASDAQ:INTC) has decided not to continue with manufacturing projects in Germany and Poland, indicating potential setbacks in its expansion plans. The company recognized approximately $800 million of non-cash impairment and accelerated depreciation charges related to excess prior generation tools. Intel Corp (NASDAQ:INTC) is experiencing capacity constraints in Intel 7, which are expected to persist through the second half of the year. Q & A Highlights Q: Lip-Bu, how fast can you fix the x86 side of the business to build trust for the foundry business? A: Lip-Bu Tan, CEO: We are focusing on the 18A technology, with steady progress on yield and performance targets. The engagement with external ecosystem partners is helping us improve, and we are confident in launching our Panther Lake SKU by year-end. Building trust with customers involves demonstrating reliability and delivering on time and at scale. Q: Dave, can you elaborate on the reasons for the sequential decline in gross margin guidance and the outlook for next year? A: David Zinsner, CFO: The main driver is the ramp of Lunar Lake, which impacts gross margins due to the cost structure. Panther Lake's early-stage maturity also contributes to higher costs. However, as yields improve and volumes increase, we expect this to become a tailwind. Foundry gross margins are expected to expand next year, and product cost structure improvements will also help. Q: Lip-Bu, how do you address concerns about the 14A development and its impact on the foundry strategy? A: Lip-Bu Tan, CEO: We are focused on building the foundational technology for 14A and engaging with customers early in the process. We are committed to the foundry business but will only invest in CapEx when we see customer volume commitments and performance milestones met. This disciplined approach ensures we deliver reliable results to our customers. Q: Dave, what is the outlook for CapEx next year, and how much can you reduce it? A: David Zinsner, CFO: We expect CapEx to decrease next year as we digest previous investments. While maintenance CapEx is about half of our current level, we anticipate spending more than $9 billion but less than $18 billion. We will finalize our CapEx plans in early 2026. Q: Lip-Bu, can you expand on Intel's AI strategy and how it plans to compete in the market? A: Lip-Bu Tan, CEO: We are focusing on inference and agentic AI, aiming to provide a full stack solution from system software to silicon. We plan to leverage our x86 franchise and explore new architectures, including working with startups and system companies for purpose-built AI platforms. We will share more details on our strategy in the coming months. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Insider
17-07-2025
- Business
- Business Insider
‘Hold Your Horses Ahead of Earnings,' Says Christopher Rolland About Intel Stock
It's well known that Intel (NASDAQ:INTC) has had a tough few years, falling behind in chip manufacturing, losing market share in CPUs, and struggling to keep up in fast-growing areas like AI and data centers. Investors are pinning their hopes on recent leadership changes and efforts to streamline operations. However, the company still faces big challenges in delivering on its plans and staying competitive with strong rivals like Nvidia and AMD. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. That's why all eyes will be on the fallen chip giant next Thursday (July 24), when it reports Q2 earnings, a key moment that could offer clues about whether Intel's turnaround efforts are starting to gain traction. But for those hoping to see early signs of real progress, disappointment may be in store. Assessing Intel's situation, Susquehanna's Christopher Rolland, an analyst ranked amongst the top 2% of Wall Street stock experts, thinks that 'tariff-related PC pull-ins' likely extended into early Q2, before tapering off later in the quarter. Still, there are some incremental positives. Average selling prices (ASPs) seem to be rising modestly quarter-over-quarter, helped by early gains in AI PC adoption. Lunar Lake laptops climbed 1.5% to around 2.2% share, Arrow Lake desktops also rose 1.5% to roughly 2.3%, and Meteor Lake laptops increased 1% to reach 12% share. Even so, demand remains skewed toward older process nodes – Intel 7 still accounts for about 55% of both laptop and desktop shipments. According to Rolland, this points to 'ongoing problem for capacity shortages at older nodes that may limit revenue upside.' Meanwhile, competitive pressures continue to mount, especially in the PC market. Intel is losing ground in the notebook space, where AMD is gaining momentum at OEMs like Dell. Rolland expects Intel's Client Computing Group (CCG) to post a 5% quarter-over-quarter decline, in line with consensus. However, he cautions that demand pull-forward and persistent market share erosion could dampen performance in the second half, potentially leading to a softer-than-usual seasonal outlook. Feedback from the server channel was somewhat more encouraging, but here, too, Intel is feeling the squeeze. AMD is taking share in critical segments, including China, enterprise customers like Dell, and U.S. hyperscalers. While Intel CPUs are still widely used in AI systems such as Nvidia's DGX, Rolland remains cautious about the shift toward Nvidia's Grace architecture and the upcoming GB200 platform. In Foundry, CEO Lip-Bu Tan might be redirecting efforts from the 18A node toward 14A, amid reports that 18A could be dropped for external customers. For Q2, the Foundry guide was lowered due to reduced wafer volume and ongoing 7nm capacity constraints. Rolland expects Q2 gross margins to be roughly in line with the lowered guide (down 270 basis points sequentially) as Lunar Lake and Arrow Lake ramp up, both relying on costly TSMC tiles. Looking ahead, the road to margin recovery remains bumpy. Server-side pressures, soft AI PC adoption, high production costs, and the fact that Panther Lake isn't expected to scale meaningfully until 2026 all pose ongoing challenges. Finally, Rolland continues to hear of layoffs at Intel, which could point to operating expense reductions beyond the $17 billion already targeted for the year – a 'favorable sign.' 'In short,' Rolland summed up, 'we expect Intel to post generally in-line results, but weaker guidance for 3Q/2H as tariff-related PC pull-ins in 1Q begin to fade, GB200/Grace ramps, and AMD continues to win PC/Server share.' Bottom line, ahead of the print, Rolland rates INTC shares a Neutral, while his $22 price target suggests the stock will stay range-bound for the foreseeable future. (To watch Rolland's track record, click here) According to TipRanks database, the INTC fence indeed appears the place to be right now; the stock claims a Hold (i.e., Neutral) consensus view, based on a mix of 26 Holds, 4 Sells and just a single Buy. Going by the $21.60 average price target, the shares will see a downside of ~5% over the coming months. (See INTC stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
16-07-2025
- Business
- Yahoo
As Intel Spins Out Its AI Robotics Arm, How Should You Play INTC Stock Here?
Intel's (INTC) decision to spin out its AI robotics division, RealSense, marks another strategic move in the chipmaker's ongoing transformation under new CEO Lip-Bu Tan. The $50 million Series A funding round for RealSense, which includes participation from MediaTek Innovation Fund and Intel Capital, signals both the promise of the robotics industry and Intel's need to streamline operations while maintaining exposure to high-growth markets. The spinout suggests a calculated approach to asset optimization during a challenging period for Intel. The chip maker is targeting $17 billion in operating expenses for 2025 and $16 billion for 2026. So, divesting non-core assets while retaining minority stakes allows Intel to reduce operational complexity while preserving upside potential. Dear Nvidia Stock Fans, Mark Your Calendars for July 16 How to Buy Tesla for a 13% Discount, or Achieve a 26% Annual Return Retirement Ready: 3 Dividend Stocks to Set and Forget Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. RealSense, formerly Intel Perceptual Computing, has been developing 3D vision technology for over a decade and serves autonomous robot manufacturers, including Eyesynth and Unitree Robotics. Intel is under pressure to execute on its foundry strategy and regain a competitive positioning in core markets where it has lost market share to Nvidia (NVDA) and Advanced Micro Devices (AMD). Under Tan's leadership, the company has adopted a more focused approach, emphasizing customer service and manufacturing excellence. The robotics market opportunity is expanding at an exponential pace, with Morgan Stanley projecting the humanoid robotics market to reach $5 trillion by 2050. However, Intel's decision to spin out rather than fully divest RealSense suggests management believes the robotics opportunity may not align with the immediate priorities of fixing core CPU competitiveness and foundry execution. For investors, the spinout showcases disciplined capital allocation and a willingness to unlock value from non-core assets. Intel's ability to attract external investment in RealSense while maintaining a minority stake indicates strategic thinking about portfolio optimization. However, the broader context remains challenging. Intel continues to wrestle with manufacturing execution, as it faces supply constraints on Intel 7 while ramping 18A production. The company's data center market share erosion persists, despite some stabilization efforts with products like Granite Rapids. Competition from both traditional rivals and ARM-based alternatives intensifies across client and server segments. The path forward for Intel stock likely depends more on foundry execution and product competitiveness than robotics spinout proceeds. Tan's emphasis on organizational flattening, return-to-office mandates, and engineering talent retention suggests awareness of cultural issues hampering innovation. Yet meaningful product leadership recovery will take time, particularly in AI workloads where Intel trails significantly. Intel stock reported a net loss of $0.13 per share in 2024 and is forecast to end 2025 with earnings of $0.30 per share. Moreover, Wall Street estimates earnings to improve to $2.70 per share in 2028. If INTC stock trades at 15 times forward earnings, it will be priced at $40 in early 2028, indicating an upside potential of almost 90% from current levels. Out of the 38 analysts covering INTC stock, one recommends 'Strong Buy,' 32 recommend 'Hold,' and five recommend 'Strong Sell.' The average target price for Intel stock is $22.55, below the current trading price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Intel's ex-CEO said he bet the company on the 18A node but now a new report claims Intel is pushing customers to next-gen 14A instead
When you buy through links on our articles, Future and its syndication partners may earn a commission. Another one bites the dust. According to a new report from Reuters, Intel's customer foundry business could largely give up on its all-important 18A node. Instead, Intel will retain 18A as an internal node for chips like its upcoming Panther Lake laptop CPU and shift the focus to promoting its 14A for external customers. If true, this follows Intel's wholesale cancellation of the 20A node, along with limited roll outs of Intel 4 and Intel 3 (Intel has never and likely will never make any consumer CPUs on those nodes). As things stand, you have to go back to 10 nm, rebranded Intel 7, to find a node that the company used across its full portfolio of enterprise and consumer chips. In the meantime, Intel has been paying Taiwanese foundry TSMC to make CPUs like its Lunar Lake laptop and Arrow Lake desktop chips. Reuters claims that Intel's new CEO Lip Bun Tan has been voicing concerns that its 18A node has been losing appeal to customers. "Tan's preliminary answer to this challenge: focus more resources on 14A, a next-generation chipmaking process where Intel expects to have advantages over Taiwan's TSMC," Reuters claims, adding that Intel is weighing up whether to, "put aside external sales of 18A and its variant 18A-P, manufacturing processes that have cost Intel billions of dollars to develop." As to how accurate the Reuters report is, Intel has already been gently adjusting expectations for the 18A node for a few months now. Back in May, Intel's CFO David Zinsner said, "we always expected that the predominant amount of volume on 18A was going to be internal." Indeed, in that same interview, Zinsner seemed to more broadly de-emphasise the importance of Intel's plans to make chips for customers. When asked about Intel's customer foundry plans, the assumption that Intel's fabs would be breaking even in 2027 and how much external business that would require, Zinsner said, "it doesn't require a ton of revenue for Foundry, it's somewhere in the low to mid single digit billions that Foundry's gotta get from external sources. But I would just remind you that some of that is going to be our partnership with UMC, some of that's going to be our partnership with Tower, some of that's going to be packaging, some of that's going to be 18A, some of that's going to be older generations, for example Intel 16. So, it's not a ton that has to come from 18A." For now, this all remains a rumour. Moreover, Reuter's track record when it comes to Intel's operations isn't exactly flawless. The outlet has previously claimed that Intel and TSMC were working on a joint venture to run the former's fabs, something which has yet to materialise. However, it's certainly true that Intel has yet to announce a healthy list of customers for 18A, with Amazon one of the few design wins the company has been able to tout. As the months and indeed years tick by, that surely becomes more problematic. By now, the assumption is that most customers for next-gen cutting edge nodes will have decided between Intel's 18A node and TSMC's upcoming N2 node. The fact that Intel hasn't been able to announce significant contracts for 18A certainly doesn't bode well. The question then becomes one of Intel's ability to deliver a future node customers do want. As things stand, and for whatever the reasons, be it the quality of its nodes or the tools it provides to customers to use those nodes, Intel hasn't been able to convince many chip designers to use Intel 4, Intel 3, Intel 20 and now, it seems, Intel 18A. So, the emphasis moves to 14A. At some point, however, you have to think Intel needs a win. It can't keep investing billions in new nodes that get limited or no use. For years now, we've been told that 18A is all important. Ex-CEO Pat Gelsigner said he'd literally bet the company on 18A. If it turns out 18A isn't all it was cracked up to be, it's hard to see how that isn't a major problem for Intel. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Intel's AI PC chips aren't selling well — instead, old Raptor Lake chips boom
When you buy through links on our articles, Future and its syndication partners may earn a commission. Credit: Intel Times are already tough for Intel, but now it turns out its new, heavily-promoted AI PC chips aren't selling as well as expected, thus creating a shortage of production capacity for its older chips. The news comes as the CEO announced looming layoffs and a poor financial report sent the company's stock tumbling. Intel says its customers are buying less expensive previous-generation Raptor Lake chips instead of the new, and significantly more expensive, AI PC models like the Lunar Lake and Meteor Lake chips for laptops. During the earnings call, Intel announced that it currently faces a shortage of production capacity for its 'Intel 7' process node, and the company expects this shortage to "persist for the foreseeable future." That's an unexpected shortage to have, as Intel's current-gen chips use newer process nodes from TSMC instead of Intel's older 'Intel 7' node. Intel is a master at production capacity planning, so its disclosure points to an unexpected surge in sales of the older 'Intel 7' products. Intel explained that the shortage of its 7nm production capacity is due to an unexpected surge in demand for its "N-1 and N-2" products, a reference to its two prior-generation chip families. This trend is occurring in both the consumer and data center markets. "What we're really seeing is much greater demand from our customers for n-1 and n-2 products so that they can continue to deliver system price points that consumers are really demanding," explained Intel's Michelle Johnston Holthaus. "As we've all talked about, the macroeconomic concerns and tariffs have everybody kind of hedging their bets and what they need to have from an inventory perspective. And Raptor Lake is a great part. Meteor Lake and Lunar Lake are great as well, but come with a much higher cost structure, not only for us, but at the system ASP price points for our OEMs as well." Bernstein Research's Stacy Rasgon pressed Holtahaus about the implications for the company's upcoming Panther Lake chips, which are set to launch at the end of the year, especially given that the looming tariff disruptions have not yet occurred. Holthaus said the Panther Lake launch remains on track and the company expects continued success in the commercial market, which she said typically precedes broader consumer adoption. Notably, she did not directly address the company's expected next-gen AI PC adoption for consumer laptops. Regardless, the company also continues its expansive work to promote and cultivate a growing developer ecosystem to unleash the power of its AI wares.
