Analysts’ Perspectives on Intel Stock Before Earnings Release

What Analysts Think of Intel Stock Ahead of Earnings

Key Takeaways

• Intel is expected to report second-quarter results after the closing bell Thursday.
• All 11 analysts covering Intel who are tracked by Visible Alpha have a “hold” rating for the stock.
• Intel’s foundry division is in focus as the chipmaker’s new CEO is reportedly considering a manufacturing change that could lead to billions in technology cost write-offs.

Intel is scheduled to report second-quarter results after Thursday’s close, with analysts parked in neutral and questions about what’s next for the chip maker’s foundry.

All 11 analysts covering Intel (INTC) have a “hold” rating for the stock. Their consensus price target near $22 implies a slight pullback from Friday’s close just over $23.

Intel’s foundry division is a focus of investor attention. New CEO Lip-Bu Tan reportedly is considering a shift in the manufacturer’s contract chipmaking business that could lead to Intel writing off hundreds of millions or even billions of dollars’ worth of chipmaking technology as a loss.

A change could move the division to change its manufacturing process in a bid to win big customers like Nvidia (NVDA) and Apple (AAPL). UBS analysts said recently that the move “may represent the first step in a hard pivot away from foundry and towards the product business, which we think may prove strategically sound but operationally challenging.”

“We have indicated ‘light’ at the end of the tunnel, but it is a long tunnel and we remain on the sidelines,” UBS said.

Analysts See Intel Revenue, Net Income Declining

UBS raised its price target to $25 from $21. Wedbush Securities, meanwhile, maintained a price target of $19, while HSBC kept a target of $22. All three analysts have neutral ratings for Intel stock.

Wall Street on average expects Intel to report quarterly revenue of $11.93 billion, down 7% year-over-year, and adjusted net income of $74.5 million, or 2 cents per share, compared with $83 million, or 2 cents per share, a year earlier. Revenue from the foundry division is expected to have fallen 7% to $3.98 billion.

Intel has reportedly started laying off thousands of workers in Oregon as part of previously announced cuts under its restructuring plan.

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