Earnings per share for the three months ending September was 41 cents per share, outperforming analysts’ expectations of 22 cents per share. This comes despite revenue falling by 8% from $15.33 billion the previous year.

Sales of the processor giant’s Client Computing group fell by 3% to $7.9 billion while sales in its Data Center and AI division slumped by 10% to $3.8 billion. In contrast, Mobileye, the company’s unit for self-driving car parts, saw sales spike 18% upwards to $530 million.

CEO Pat Gelsinger revealed to reporters that Intel would look to cut costs by $3 billion this year, with operating expenses already down by 15% from the previous year.

The post Intel Stock Surges on Strong Earnings appeared first on theprimarymarket.com.

Revenue fell by 15% to $12.9 billion from $15.3 billion a year ago, marking the sixth consecutive quarter of declining PC sales. Intel’s data center and AI business fell 15% to $4 billion from $4.7 billion during the previous year, while its Client Computing group—the biggest business unit that concerns laptop and desktop shipments – saw a 12% slump in revenue from the previous year to $6.8 billion.

Despite the decline in revenue, Intel was able to record earnings per share of 13 cents, thereby beating a loss of 3 cents per share expected by industry analysts. The semiconductor producer has forecast earnings per share of 20 cents for the current quarter.

For the third quarter, Intel has projected an adjusted gross margin of 43%, higher than estimates of 40%. In 2024, the company expects to sell at least $1 billion worth of its AI chips.

Intel’s shares have risen by about 30% so far for the year to date.

The post Intel Shares Rise After Reporting Unexpected Profit appeared first on theprimarymarket.com.

Intel’s Executive Vice President Sandra Rivera shared that the company has already sent out samples of its Sierra Forest chip with 144 processing cores and plans to start shipping them to customers on a regular basis in 2024. Also, its Clearwater Forest processors, made with Intel’s new 18A process technology, will roll out in 2025.

The arrival of the chips earlier than experts predicted and the shift to new technology have been seen as a positive step forward by analysts. The news also got the intention of investors, who sent Intel’s stock surging after the announcement.

The company’s stock saw a 7 percent jump compared to Tuesday’s price of 29.29 and closed at $31.52 per share on Wednesday. Intel’s shares are now almost 18 percent up year to date.

Once an industry leader, Intel has lost a significant share of the market in recent years to rival AMD (Advanced Micro Devices). Some of its biggest clients, like Amazon, started making their own chips, handing an additional hit to the company’s business. By introducing advanced technology and offering its new products ahead of time, Intel now hopes to reverse its fortunes and start working its way to the top again.

The post Intel Stock Surges After Server Chips Early Arrival Announcement appeared first on theprimarymarket.com.

Reportedly, the layoff plans will become official at some point this month, with the announcement set to coincide with the release of Q3 earnings results. Some of Intel’s divisions will see more reduction than others, with sales and marketing set to have its workforce trimmed up to 20%.

The demand for PCs has been moderate in recent months after the sales skyrocketed during the pandemic. This has particularly hurt Intel considering PC processors make up the majority of the company’s business. As a result, Intel was forced to lower its forecasts for the year and now expects $65 billion to $68 billion in revenue compared to previous estimates of $76 million.

The layoffs won’t be the only big step Intel is determined to make in attempts to deal with recent challenges. Intel CEO Pat Gelsinger recently sent out a letter to the staff in which he unveiled plans to “create greater decision-making separation” between design and manufacturing teams. However, analysts are unsure whether these decisions will be enough to start changing the company’s fortunes.

Intel stock went up around 1% after the Bloomberg report went live and closed at $25.33 per share on Wednesday. The company’s shares are still 52.40 down year to date.

The post Intel Corp. Planning Significant Layoffs Amid Low PC Sales appeared first on theprimarymarket.com.

“So a quarter ago, we would have thought that the PC business would be down, let’s call it high-single digits [percentage]. And our current view of the PC business is that it will be down, let’s call it mid-teens [percentage],” CEO Dr. Lisa Su explained to those present.

AMD’s updated sales forecast for the third quarter lies within the range of $6.5 billion to $6.9 billion, with a third-quarter gross profit margin projection of 54%. AMD’s stock dipped by 5% during pre-market trading on Wednesday.

By making this announcement, AMD is following in the footsteps of rival chip giant Intel; which told its investors to expect the PC market to plunge by 10% by year’s end. Intel’s stock tanked by 10% on Friday following this announcement.

The post AMD and Intel Warn That PC Market Growth is Nearing an End appeared first on theprimarymarket.com.

Intel Corp shares suffered a 10% hit in extended trading following the news, dipping to $35.34 per share compared to the $40.18 close on Thursday. The Intel stock was already 25% down year-to-date.

According to Intel’s Q2 report, the company recorded revenue of $15.32 billion versus the $17.92 billion expected. It had adjusted earnings per share of 29 cents while the estimate was 70 cents per share.

Correspondingly, Intel now sees its 2022 revenue reaching between $65 billion and $68 billion, which is a significant adjustment compared to the previously predicted $76 billion. The expected adjusted profit is now $2.30 per share, more than one-third down from the $3.60 per share the company previously forecast.

Many experts believe Intel’s troubles are the result of a pandemic slowdown that caused people to move away from their PCs. A similar sentiment was echoed in Intel Chief Executive Pat Gelsinger’s recent chat with Reuters, who also added that the company didn’t react well to this shift.

“The economic shift was harsher and drove not only consumption changes in the marketplace, but also dramatic moves in the inventory position of key customers,” Gelsinger explained. “Those effects caused a very sharp shift in the business, and we didn’t execute particularly well.”

The post Intel Corp Stock Tumbles 10% After Company Misses Badly on Estimates appeared first on theprimarymarket.com.

Earnings per share for the three months ending September was 41 cents per share, outperforming analysts’ expectations of 22 cents per share. This comes despite revenue falling by 8% from $15.33 billion the previous year.

Sales of the processor giant’s Client Computing group fell by 3% to $7.9 billion while sales in its Data Center and AI division slumped by 10% to $3.8 billion. In contrast, Mobileye, the company’s unit for self-driving car parts, saw sales spike 18% upwards to $530 million.

CEO Pat Gelsinger revealed to reporters that Intel would look to cut costs by $3 billion this year, with operating expenses already down by 15% from the previous year.

The post Intel Stock Surges on Strong Earnings appeared first on theprimarymarket.com.

Revenue fell by 15% to $12.9 billion from $15.3 billion a year ago, marking the sixth consecutive quarter of declining PC sales. Intel’s data center and AI business fell 15% to $4 billion from $4.7 billion during the previous year, while its Client Computing group—the biggest business unit that concerns laptop and desktop shipments – saw a 12% slump in revenue from the previous year to $6.8 billion.

Despite the decline in revenue, Intel was able to record earnings per share of 13 cents, thereby beating a loss of 3 cents per share expected by industry analysts. The semiconductor producer has forecast earnings per share of 20 cents for the current quarter.

For the third quarter, Intel has projected an adjusted gross margin of 43%, higher than estimates of 40%. In 2024, the company expects to sell at least $1 billion worth of its AI chips.

Intel’s shares have risen by about 30% so far for the year to date.

The post Intel Shares Rise After Reporting Unexpected Profit appeared first on theprimarymarket.com.

Intel’s Executive Vice President Sandra Rivera shared that the company has already sent out samples of its Sierra Forest chip with 144 processing cores and plans to start shipping them to customers on a regular basis in 2024. Also, its Clearwater Forest processors, made with Intel’s new 18A process technology, will roll out in 2025.

The arrival of the chips earlier than experts predicted and the shift to new technology have been seen as a positive step forward by analysts. The news also got the intention of investors, who sent Intel’s stock surging after the announcement.

The company’s stock saw a 7 percent jump compared to Tuesday’s price of 29.29 and closed at $31.52 per share on Wednesday. Intel’s shares are now almost 18 percent up year to date.

Once an industry leader, Intel has lost a significant share of the market in recent years to rival AMD (Advanced Micro Devices). Some of its biggest clients, like Amazon, started making their own chips, handing an additional hit to the company’s business. By introducing advanced technology and offering its new products ahead of time, Intel now hopes to reverse its fortunes and start working its way to the top again.

The post Intel Stock Surges After Server Chips Early Arrival Announcement appeared first on theprimarymarket.com.

Reportedly, the layoff plans will become official at some point this month, with the announcement set to coincide with the release of Q3 earnings results. Some of Intel’s divisions will see more reduction than others, with sales and marketing set to have its workforce trimmed up to 20%.

The demand for PCs has been moderate in recent months after the sales skyrocketed during the pandemic. This has particularly hurt Intel considering PC processors make up the majority of the company’s business. As a result, Intel was forced to lower its forecasts for the year and now expects $65 billion to $68 billion in revenue compared to previous estimates of $76 million.

The layoffs won’t be the only big step Intel is determined to make in attempts to deal with recent challenges. Intel CEO Pat Gelsinger recently sent out a letter to the staff in which he unveiled plans to “create greater decision-making separation” between design and manufacturing teams. However, analysts are unsure whether these decisions will be enough to start changing the company’s fortunes.

Intel stock went up around 1% after the Bloomberg report went live and closed at $25.33 per share on Wednesday. The company’s shares are still 52.40 down year to date.

The post Intel Corp. Planning Significant Layoffs Amid Low PC Sales appeared first on theprimarymarket.com.

“So a quarter ago, we would have thought that the PC business would be down, let’s call it high-single digits [percentage]. And our current view of the PC business is that it will be down, let’s call it mid-teens [percentage],” CEO Dr. Lisa Su explained to those present.

AMD’s updated sales forecast for the third quarter lies within the range of $6.5 billion to $6.9 billion, with a third-quarter gross profit margin projection of 54%. AMD’s stock dipped by 5% during pre-market trading on Wednesday.

By making this announcement, AMD is following in the footsteps of rival chip giant Intel; which told its investors to expect the PC market to plunge by 10% by year’s end. Intel’s stock tanked by 10% on Friday following this announcement.

The post AMD and Intel Warn That PC Market Growth is Nearing an End appeared first on theprimarymarket.com.

Intel Corp shares suffered a 10% hit in extended trading following the news, dipping to $35.34 per share compared to the $40.18 close on Thursday. The Intel stock was already 25% down year-to-date.

According to Intel’s Q2 report, the company recorded revenue of $15.32 billion versus the $17.92 billion expected. It had adjusted earnings per share of 29 cents while the estimate was 70 cents per share.

Correspondingly, Intel now sees its 2022 revenue reaching between $65 billion and $68 billion, which is a significant adjustment compared to the previously predicted $76 billion. The expected adjusted profit is now $2.30 per share, more than one-third down from the $3.60 per share the company previously forecast.

Many experts believe Intel’s troubles are the result of a pandemic slowdown that caused people to move away from their PCs. A similar sentiment was echoed in Intel Chief Executive Pat Gelsinger’s recent chat with Reuters, who also added that the company didn’t react well to this shift.

“The economic shift was harsher and drove not only consumption changes in the marketplace, but also dramatic moves in the inventory position of key customers,” Gelsinger explained. “Those effects caused a very sharp shift in the business, and we didn’t execute particularly well.”

The post Intel Corp Stock Tumbles 10% After Company Misses Badly on Estimates appeared first on theprimarymarket.com.