Latest news with #chipbusiness
Yahoo
12-07-2025
- Business
- Yahoo
Intel Is Kicking Off a Major Layoffs Push. What Do the Job Cuts Mean for INTC Stock?
As part of a massive round of layoffs that will ultimately impact thousands of global employees, Intel (INTC) announced it would cut 529 Oregon workers effective July 15. This comes as part of an overhaul under new CEO Lip-Bu Tan, who was hired to turn around Intel's chip business. The news caused investor spirits to soar immediately, driving Intel's stock over 7% higher on July 8 as the market digested the expected cost savings and fresh start for operations. The radical pivot underscores the seriousness of Intel's challenges in catching up with rivals like Taiwan Semiconductor Manufacturing (TSM), Advanced Micro Devices (AMD), and Nvidia (NVDA) in advanced chip design and production. While broader market trends and demand for artificial intelligence keep reshaping the chip-manufacturing business, Intel's going back to the 'basics' under new management aims to spur wiser execution and restore its competitive lead. Creating a 38% 'Dividend' on SOFI Stock Using Options Nvidia Stock Regains Momentum. Is It Time to Buy, Sell, or Hold NVDA? As Prime Day Sales Fall, Should You Sell Amazon Stock or Stay the Course? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Intel (INTC) is a leading global semiconductor company based in Santa Clara, California, with a market capitalization of around $100 billion. Intel's legacy dates back to decades of dominance in desktop and server CPU design. Intel has, in recent years, struggled as its global competitors such as TSMC, AMD, and Nvidia overtook it in terms of technological advancement, primarily in the realm of artificial intelligence and next-generation process nodes. INTC stock has traded in the last 52 weeks in the wider range of $17.67 to $37.16, reflecting fluctuations in the market's confidence in its comeback story. Following the layoffs news, shares are up 9.2% over the past five days. However, they remain down more than 30% over the past year. Another contentious issue is the valuation. Intel is changing hands at 1.94 times sales and only 0.97 times its book value. The profit margin is deep in the red at -35.32% and the return on equity is -3.15%. Intel's lower valuation relative to peers Nvidia and Amd reasonably represents the uphill battle it faces to turn around operations. Intel's Q1 2025 numbers were mixed. The company produced $12.7 billion in revenue, flat year over year, and reported $0.13 in adjusted earnings per share, down from $0.18 in the prior-year period. On a GAAP basis, Intel reported a loss per share of $0.19, wider than the $0.09 loss last year. Looking ahead, the company guided cautiously for Q2 revenue of $11.2 billion to $12.4 billion, with EPS in the range of breakeven to a loss of $0.32 per share. CEO Lip-Bu Tan stressed the need for the company go back to the 'basics.' This involves reducing management layers, eliminating non-core costs, and heavily investing in its core foundry business. As part of this, the company intends to lower operating expenses to $17 billion in 2025 and then down to $16 billion in 2026. The company also lowered its 2025 capital expenditure target to $18 billion, down from an initial forecast of $20 billion. Analysts are divided on Intel's rebound. Intel's mixed outlook has its median price target at $22.55, indicating modest downward from its current price. Most analysts are in a 'wait-and-see' position with a 'Hold' consensus rating. On the date of publication, Yiannis Zourmpanos had a position in: AMD, NVDA. 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
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Samsung projects large drop in second-quarter profit as it faced U.S. AI chip curbs on China
Samsung Electronics SSNLF projected a 56-per-cent drop in second-quarter operating profit from a year earlier, far worse than analysts expected as its struggling chip business faced U.S. chip curbs on China. The world's largest memory chipmaker blamed the profit miss mainly on its Device Solutions (DS) division, which houses its chip business. 'The DS Division recorded a quarter-on-quarter decline in profit due to inventory value adjustments and the impact of U.S. restrictions on advanced AI chips for China,' Samsung said in a statement. The memory business took a hit from one-off costs such as inventory value adjustments, though Samsung added that its improved high-bandwidth memory (HBM) products were undergoing customer evaluation and proceeding with shipments. Its artificial intelligence chips business was dogged by delays in the supply of its latest products to Nvidia NVDA-Q and continued losses in its contract chip manufacturing business, analysts said. Samsung estimated an operating profit of 4.6-trillion won ($4.6-billion) for the April-June period, versus a 6.2-trillion won ($6.2-billion) LSEG SmartEstimate. That would compare with 10.4-trillion won ($10.3-billion) in the same period a year earlier and 6.7-trillion won ($6.7-billion) in the preceding quarter. Revenue would likely fall 0.1 per cent to 74-trillion won ($73.5-billion) from a year earlier, the filing showed. Samsung is expected to release detailed results including a breakdown of earnings for each of its businesses in late July.
Asharq Al-Awsat
07-07-2025
- Business
- Asharq Al-Awsat
Samsung Expects a 56% Drop in Q2 Operating Profit, Far Short of Estimates
Samsung Electronics on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, missing analysts' estimates by far. Its chip business struggled with weak sales of artificial intelligence chips, dogged by delays in the supply of its latest chips to Nvidia and continued losses in its contract chip manufacturing business, analysts said. The world's largest memory chipmaker estimated an operating profit of 4.6 trillion won for the April-June period, versus a 6.2 trillion won LSEG SmartEstimate. That would compare with 10.4 trillion won in the same period a year earlier and 6.7 trillion won in the preceding quarter. Revenue would likely fall 0.1% to 74 trillion won from a year earlier, the filing showed. Samsung is expected to release detailed results, including a breakdown of earnings for each of its businesses, in late July.
