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Intel (INTC -0.34%) stock investors have much to look forward to when the company announces its quarterly financial results.*Stock prices used were the afternoon prices of April 18, 2025. The video was published on April 20, 2025. ...

The semiconductor sector is growing rapidly thanks to the rise of artificial intelligence (AI), making it a great area to invest in. The industry saw 19% year-over-year revenue growth to $627 billion in 2024, and is forecast to hit $981 billion by 2029.Two giants of the industry to consider investing in are Intel (INTC -3.28%) and Nvidia (NVDA -5.30%). The former enjoyed decades of dominance in the PC arena. The latter flourished as its semiconductor chips proved popular for AI.Reasons exist to buy shares i ...

Core Viewpoint - Intel is facing significant challenges in the semiconductor market, particularly in AI infrastructure and foundry operations, leading to a 45% decline in stock value over the past year [1] Group 1: Leadership and Turnaround Efforts - Intel appointed Lip-Bu Tan as the new CEO, who has a background in electronic design automation and previously served on Intel's board [1][2] - Tan's plans focus on revitalizing AI chip efforts, improving the foundry business, and streamlining operations, which are expected to be challenging [2] Group 2: Market Position and Competition - Intel's market share in the GPU space is nearly zero, lagging behind Nvidia and AMD, with failed attempts to compete in the GPU market [3][5] - The company has shifted focus to the Jaguar Shores GPU, designed for AI inference and high-performance computing, as part of a broader system [4] Group 3: Foundry Business Challenges - Intel's foundry business is under pressure, with a 7% revenue decline in 2024 and a $13.4 billion loss, raising concerns about its viability [8] - The company is required to maintain a majority stake in its foundry business to comply with CHIPS Act funding conditions [7] Group 4: Financial Position and Asset Management - Intel has invested nearly $50 billion in capital expenditures over the past two years, indicating significant physical asset value [10] - The company is selling a 51% stake in Altera for $4.46 billion, valuing the company at $8.75 billion, which is less than the original purchase price [11] - Intel's stock is trading at a price-to-tangible book value ratio of 1.2, suggesting it is undervalued relative to its physical assets [12]

Group 1: Intel's Performance and Challenges - Intel's stock has declined nearly 15% over the past 20 years, missing major technology transitions like mobile and AI [1] - Competitors such as AMD and Nvidia have significantly outperformed Intel in the chip market over the last decade [2] - The appointment of Lip-Bu Tan as CEO has raised hopes for a turnaround, but Intel still faces structural challenges and a legacy of poor strategic decisions [3] Group 2: AppLovin's Growth Potential - AppLovin's shares surged over 700% in 2024, although its market cap has retreated to $81 billion, still lower than Intel's $88.6 billion [5] - The company reported a 75% increase in advertising revenue to $3.22 billion in 2024, focusing on its core adtech business after selling its mobile apps division [6] - AppLovin is expanding into connected TV, e-commerce, and other verticals, indicating significant growth potential in the mobile ad market [7] Group 3: Micron's Competitive Edge - Micron, like Intel, designs and manufactures chips and is exposed to business cycle fluctuations [8] - The company benefited from the AI boom, with a 38% revenue increase to $8.05 billion in the fiscal second quarter, driven by data center demand [9] - Micron's gross margin improved to 36.8%, and adjusted earnings per share rose from $0.42 to $1.56, positioning it favorably against Intel [10] - Currently trading at a price-to-earnings ratio of 17, Micron's market cap is $79.4 billion, making it a strong contender to surpass Intel in valuation [11]

Core Viewpoint - Analysts forecast Intel (INTC) will report quarterly earnings of $0.01 per share, reflecting a year-over-year decline of 94.4%, with revenues expected to be $12.32 billion, down 3.2% from the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised downward by 2.1% in the last 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Net Revenues- Total Intel Products Group- Client Computing Group' will reach $6.86 billion, a year-over-year decline of 9% [5]. - 'Net Revenues- Total Intel Products Group- Network and Edge' is projected at $1.41 billion, reflecting a 3.1% increase from the prior year [5]. - 'Net Revenues- Total Intel Products Group- Data Center and AI' is expected to be $2.97 billion, indicating a 2% decline year-over-year [6]. - 'Net Revenues- Intel Foundry Services' is estimated at $4.25 billion, down 2.7% from the previous year [6]. - 'Net Revenues- All other- Mobileye' is projected to reach $449.28 million, suggesting an 88% increase year-over-year [6]. - The estimated 'Net Revenues- All other- Other' is $140.08 million, indicating a decline of 27.8% from the year-ago quarter [7]. Stock Performance - Intel shares have decreased by 21% in the past month, compared to a 6.9% decline in the Zacks S&P 500 composite [7].

Core Insights - Intel Corporation has announced a definitive agreement to sell a 51% controlling interest in its Altera programmable chip business to private equity firm Silver Lake, valuing Altera at $8.75 billion [1][2][4] - This divestment is part of a strategic shift under CEO Lip-Bu Tan, aimed at refocusing on core business segments and improving financial stability [3][7][16] - The sale is expected to generate approximately $4.46 billion in gross proceeds, which will be utilized for funding new fabrication facilities and R&D efforts [9][17] Financial Performance - Altera's revenue for fiscal year 2024 was $1.54 billion, with a non-GAAP operating income of $35 million, a decline from $1.93 billion in revenue and $543 million in operating income in 2014 [5] - The significant drop in Altera's financial performance under Intel's ownership indicates potential issues with integration and strategic execution [5][4] Strategic Implications - The divestment allows Altera to regain operational independence as a pure-play FPGA provider, while Intel retains a 49% minority stake [3][6] - This move simplifies Intel's organizational structure and enables management to concentrate on stabilizing core product lines and executing the Intel Foundry Services (IFS) roadmap [8][7] - The divestment is seen as a necessary step in Intel's turnaround strategy amidst fierce competition from AMD and NVIDIA [7][10] Market Reaction - Following the announcement, Intel's stock experienced a positive reaction, although the overall market sentiment remains cautious with a consensus rating of "Reduce" among analysts [11][13] - The current stock price is around $18.93, with a 12-month price target averaging $25.38, indicating a potential upside of 34.05% [12][13] Future Outlook - The success of Intel's turnaround strategy is contingent on its ability to execute the IFS strategy effectively and regain technological leadership [10][18] - While the Altera sale provides financial breathing room, the path ahead is fraught with challenges that require precise execution in manufacturing and market strategy [17][18]

Core Viewpoint - TSMC has denied any discussions regarding a joint venture with Intel, countering recent rumors about a potential collaboration [2][4]. Company Summary - TSMC's CEO C.C. Wei stated that the company is not engaged in any discussions with other firms about joint ventures or technology licensing [2]. - TSMC reported a profit beat for the first quarter, driven by a surge in demand for AI chips [5]. - The company faces potential challenges from U.S. tariffs targeting Taiwan and stricter export controls affecting clients like Nvidia and AMD [5]. Industry Context - Intel has been struggling in the semiconductor market, losing market share to competitors such as Nvidia, AMD, Qualcomm, and Apple [3]. - Intel experienced its worst performance as a public company last year, with shares dropping by 61% [3]. - The U.S. government, under President Trump, is investigating semiconductor imports, which may lead to new tariffs impacting the chip industry [4].

If a stock is trading near its 52-week low, you know that it's probably facing some challenges. But when you're talking about a stock that is trading at around its five-year lows, you know it's probably in deep trouble, and may already be in the midst of a turnaround.Nike (NKE -2.14%), Intel (INTC -2.90%), and Kraft Heinz (KHC -2.00%) all seem like they could be good, cheap buys to load up on right now, given their beaten-down prices. But investors have been struggling to find reasons to take a chance on th ...

The first-quarter semiconductor earnings parade kicks off with ASML Holding ASML on Wednesday and Taiwan Semiconductor Manufacturing Co TSM on Thursday, followed by the U.S. semi and semicap peers in the following week.For U.S. chip vendors, BofA Securities analysts Vivek Arya and Duksan Jang expect first-quarter results to beat as their original outlook was likely conservative and tariff-related pull-ins created a better demand environment.However, the second-quarter outlook could be in line as companies c ...