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.

The purchase of Tower was a central component of Intel CEO Pat Gelsinger’s plan to get a foothold in a faster-growing part of the semiconductor industry. Still, Gelsinger refuses to abandon the possibility of working with Tower, stating that “we will continue to look for opportunities to work together” following the breakdown of the agreement.

Dominated by Taiwanese companies, the foundry segment of the semiconductor industry is where Tower finds itself. Despite its small market share, the Israeli company has the expertise and a customer base that Intel lacks. Initially, the acquisition was expected to take 12 months to roll out, however, the failure to get Chinese approval all but buried the deal which had already encountered multiple hurdles. Intel will pay Tower a $353 million termination fee.

The post Intel Abandons Tower Semiconductor Deal Following Unexpected Hiccup 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.

Wall Street analysts expect Intel to report revenue of $11.1 billion, down from the $18.4 billion reported in the first quarter of 2022. This would result in adjusted losses per share of $0.15, compared to adjusted earnings per share of $0.87.

PC sales are expected to have dropped to $4.9 billion from $9.3 billion in Q1 of 2022, while the company’s revenue stemming from its data center and AI business is expected to have declined to $3.5 billion from $6.0 billion during the same period in the previous year.

Intel shares have fallen by 36% over the past few years as the company continues to struggle to compete with the likes of Nvidia and AMD on the AI front. Since the start of the year, Intel’s stock is up by just 9%.

The post Intel Expected to Report Sales Slump in Q1 Earnings Report 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.

Futures on the S&P 500 fell 0.3%, while futures on the Nasdaq 100 declined by 0.5%. Futures on the Dow Jones Industrial Average remained relatively unchanged.

Across the pond, the Stoxx Europe 600 Index was unable to build on its 0.4% gain from the previous day, while MSCI Emerging Markets Index remained mostly unchanged. In contrast, the MSCI Asia Pacific Index advanced by 0.4%.

“You are seeing more and more companies turn cautious about the earnings outlook,” chief investment officer at BRI Wealth Management Dan Boardman-Weston said. “If there is a recession, earnings will have to decline and price-to-earnings ratios have to come down.”

Despite growing concerns of a impending recession, U.S. investor confidence was partially restored when economic data on Thursday indicated that U.S. gross domestic product expanded at a rate that was faster than expected.

Following this development, the U.S. dollar remained relatively unchanged, strengthening against the pound and the yuan while slipping against the yen. The euro, too, remained mostly unchanged.

The post Global Stocks Stumble Following Gloomy Intel Earnings Outlook appeared first on theprimarymarket.com.

The report stated that the U.S. share of chip design revenue has dropped from over 50% in 2015 to 46% in 2021. According to the report, this figure could slump below 36% by the end of the decade without sufficient support from the government. This comes after the U.S. has already lost its lead in chip manufacturing to China.

Following the loss of its poll position as the world’s leading chip manufacturer, the U.S. government passed the CHIPS and Science Act this year in an effort to restore its lead. This initiative includes $39 billion in manufacturing grants and $13 billion for R&D activities.

Among the United States’ leading chip designers are Nvidia, Intel, and Qualcomm. While Intel Corp designs and manufactures chips in-house, Nvidia Corp and Qualcomm Inc handle the design while outsourcing production to foreign companies, including the likes of Taiwan Semiconductor Manufacturing Co.

Government support is also listed by the report as a significant driver of market share growth for China and South Korea.

The post Report: U.S. Chip Design Market to Stumble Without Government Support 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.

The purchase of Tower was a central component of Intel CEO Pat Gelsinger’s plan to get a foothold in a faster-growing part of the semiconductor industry. Still, Gelsinger refuses to abandon the possibility of working with Tower, stating that “we will continue to look for opportunities to work together” following the breakdown of the agreement.

Dominated by Taiwanese companies, the foundry segment of the semiconductor industry is where Tower finds itself. Despite its small market share, the Israeli company has the expertise and a customer base that Intel lacks. Initially, the acquisition was expected to take 12 months to roll out, however, the failure to get Chinese approval all but buried the deal which had already encountered multiple hurdles. Intel will pay Tower a $353 million termination fee.

The post Intel Abandons Tower Semiconductor Deal Following Unexpected Hiccup 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.

Wall Street analysts expect Intel to report revenue of $11.1 billion, down from the $18.4 billion reported in the first quarter of 2022. This would result in adjusted losses per share of $0.15, compared to adjusted earnings per share of $0.87.

PC sales are expected to have dropped to $4.9 billion from $9.3 billion in Q1 of 2022, while the company’s revenue stemming from its data center and AI business is expected to have declined to $3.5 billion from $6.0 billion during the same period in the previous year.

Intel shares have fallen by 36% over the past few years as the company continues to struggle to compete with the likes of Nvidia and AMD on the AI front. Since the start of the year, Intel’s stock is up by just 9%.

The post Intel Expected to Report Sales Slump in Q1 Earnings Report 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.

Futures on the S&P 500 fell 0.3%, while futures on the Nasdaq 100 declined by 0.5%. Futures on the Dow Jones Industrial Average remained relatively unchanged.

Across the pond, the Stoxx Europe 600 Index was unable to build on its 0.4% gain from the previous day, while MSCI Emerging Markets Index remained mostly unchanged. In contrast, the MSCI Asia Pacific Index advanced by 0.4%.

“You are seeing more and more companies turn cautious about the earnings outlook,” chief investment officer at BRI Wealth Management Dan Boardman-Weston said. “If there is a recession, earnings will have to decline and price-to-earnings ratios have to come down.”

Despite growing concerns of a impending recession, U.S. investor confidence was partially restored when economic data on Thursday indicated that U.S. gross domestic product expanded at a rate that was faster than expected.

Following this development, the U.S. dollar remained relatively unchanged, strengthening against the pound and the yuan while slipping against the yen. The euro, too, remained mostly unchanged.

The post Global Stocks Stumble Following Gloomy Intel Earnings Outlook appeared first on theprimarymarket.com.

The report stated that the U.S. share of chip design revenue has dropped from over 50% in 2015 to 46% in 2021. According to the report, this figure could slump below 36% by the end of the decade without sufficient support from the government. This comes after the U.S. has already lost its lead in chip manufacturing to China.

Following the loss of its poll position as the world’s leading chip manufacturer, the U.S. government passed the CHIPS and Science Act this year in an effort to restore its lead. This initiative includes $39 billion in manufacturing grants and $13 billion for R&D activities.

Among the United States’ leading chip designers are Nvidia, Intel, and Qualcomm. While Intel Corp designs and manufactures chips in-house, Nvidia Corp and Qualcomm Inc handle the design while outsourcing production to foreign companies, including the likes of Taiwan Semiconductor Manufacturing Co.

Government support is also listed by the report as a significant driver of market share growth for China and South Korea.

The post Report: U.S. Chip Design Market to Stumble Without Government Support 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.