Intel Stock Surges Over 4% Ahead of Q1 Earnings Amid Revenue Concerns
Intel Stock climbs over 4% ahead of Q1 earnings report, analysts predict fall in revenue
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Intel Corporation's stock rose more than 4% ahead of its first-quarter earnings report, despite analysts predicting a 92% drop in earnings year-over-year and revenue falling to $12.4 billion. Investors are keen on the company's efforts to address supply-chain issues and capitalize on AI demand.
- 01Intel's stock increased by 4.17%, reaching $68 ahead of earnings.
- 02Analysts predict a 92% decline in earnings per share to 1 cent.
- 03Revenue is expected to drop to $12.4 billion with gross margins under 35%.
- 04Intel's stock has rallied approximately 80% this year, supported by strategic partnerships.
- 05Key focus during earnings will be on the 18A process yields for future manufacturing.
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Intel Corporation's stock experienced a notable increase of 4.17%, reaching $68 on Thursday as investors awaited the company's first-quarter earnings report. Despite this uptick, analysts forecast a significant 92% decline in adjusted earnings per share, projecting it to fall to 1 cent compared to the previous year. Revenue is expected to decrease to $12.4 billion, with gross margins anticipated to contract to below 35%, down from 39% in Q1 2025. This trend of falling short of revenue projections has persisted for two years. The stock has surged nearly 80% this year, buoyed by strategic partnerships, including an expanded AI CPU alliance with Google and involvement in Elon Musk's Terafab AI project. Analysts from HSBC and BNP Paribas Exane have upgraded their ratings, reflecting optimism despite the revenue concerns. Stakeholders will be particularly interested in the 18A process yields during the earnings release, which will indicate the company's manufacturing efficiency and future prospects.
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The anticipated decline in Intel's earnings may affect investor confidence and stock performance, potentially impacting those invested in tech stocks.
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