Intel NASDAQ: INTC producent układów scalonych

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Intel initiated with Underperform rating at Wolfe
Wolfe Research initiated coverage on Intel (NASDAQ:INTC) with an Underperform rating and a price target of $27.00, as reported in real time on InvestingPro. Shares were recently down some 1.5% to $33.96 in premarket trading.

Wolfe says its previous Underperform rating on the company - in 2021/2022 - was based on its belief that Intel's recovery would be lengthy and costly, making it unlikely to benefit the stock. The firm maintains this same fundamental view.

We believe that optimism about a recovery is again rising, which presents a risk that our Underperform call is early. Nonetheless, with the prospect of an industry wide recovery for CY24, and INTC having little chance of generating any cash flow during that recovery, we think that sets up underperformance for the stock.

wolfemini wolfea wolfes

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Latest Release
Jul 27, 2023

EPS / Forecast
0.13! / -0.04

Revenue / Forecast
12.9B / 12.09B

Chip giant Intel (INTC) late Thursday beat Wall Street's targets for the second quarter and offered an outlook that was above views for the current period. Intel stock jumped in extended trading.

The Santa Clara, Calif.-based company earned an adjusted 13 cents a share on sales of $12.9 billion in the June quarter. Analysts polled by FactSet had expected Intel to lose 4 cents a share on sales of $12.12 billion. In the year-earlier period, Intel earned 29 cents a share on sales of $15.32 billion.

While Intel's second-quarter results were better than expected, its earnings have declined on a year-over-year basis for seven quarters in a row. And Intel's sales have fallen for six straight quarters.

For the current quarter, Intel expects to earn an adjusted 20 cents a share on sales of $13.4 billion. That's based on the midpoint of its guidance. Wall Street had called for earnings of 16 cents a share on sales of $13.2 billion in the third quarter. In the same quarter last year, Intel earned an adjusted 59 cents a share on sales of $15.3 billion.

Intel Stock Pops After Report
In after-hours trading on the stock market today, Intel stock surged 6% to 36.62. During the regular session Thursday, Intel stock advanced 0.6% to close at 34.55.


"Our Q2 results exceeded the high end of our guidance as we continue to execute on our strategic priorities, including building momentum with our foundry business and delivering on our product and process roadmaps," Chief Executive Pat Gelsinger said in a news release.

He added, "We are also well positioned to capitalize on the significant growth across the AI continuum by championing an open ecosystem and silicon solutions that optimize performance, cost and security to democratize AI from cloud to enterprise, edge and client."

INTC Stock Has Subpar Composite Rating
Intel's Client Computing Group saw sales decline 12% year over year to $6.8 billion in the second quarter amid continued weak sales of personal computers.

Meanwhile, sales in the company's Data Center and AI unit decreased 15% to $4 billion.

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On the earnings front, Intel (NASDAQ:INTC) shares jumped in premarket trading after the U.S. semiconductor group said a decline in sales of its key personal computer chips in the second quarter was not as steep as analysts had anticipated (see below).

2. Intel PC chip sales improve

Intel's inventory glut showed signs of easing in the second quarter, as the U.S. chipmaking giant was boosted by a resurgence of demand in the PC market.

Sales of its key PC chips dropped by 12% in the three months ended July 1 to $6.8 billion, although this still topped expectations for a fall of 21%, suggesting that a nascent recovery in demand for the general-purpose processors made by Intel could be underway.

The market had slumped in recent months, pulling back from a clamor for at-home computing products during the COVID-19 pandemic. The decline led manufacturers to leave chips on their shelves, a trend that weighed heavily on Intel. The Santa Clara, California-based group slipped to two straight quarters of losses, including a worst-ever $2.76B shortfall in the first three months of 2023.

Analysts had estimated that Intel would report another loss in the second quarter, but the firm bounced back, posting a profit of $1.5B.

Yet, headwinds remain for the company. The inventory overhang is still anticipated to impact Intel for the rest of the year, while many of its data center customers are projected to shift their spending into graphics processing units, or chips needed to power artificial intelligence calculations -- a space currently dominated by Intel rival Nvidia (NASDAQ:NVDA).

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[translator]
NOWY JORK (Reuters) – Intel i izraelski producent chipów kontraktowych Tower Semiconductor (NASDAQ:TSEMProponowana transakcja o wartości 5,4 miliarda dolarów została wzajemnie rozwiązana, ponieważ nie były w stanie uzyskać terminowych zgód regulacyjnych, poinformowały firmy w środę.

Akcje izraelskiej firmy spadły o około 9% w Stanach Zjednoczonych, a także w Tel Awiwie.

Intel (NASDAQ:INTC), która zdecydowała się kupić Tower w zeszłym roku, zapłaci temu ostatniemu opłatę za rozwiązanie umowy w wysokości 353 milionów dolarów, podała firma w oświadczeniu.

Tower i Intel nie podały szczegółów dotyczących zatwierdzeń regulacyjnych.

Reuters poinformował we wtorek późnym wieczorem, że Intel wycofa się z umowy, gdy ich umowa wygaśnie bez zgody organów regulacyjnych z Chin.

"Po dokładnym rozważeniu i dokładnym omówieniu oraz po tym, jak nie otrzymały żadnych wskazówek dotyczących pewnych wymaganych zgód regulacyjnych, obie strony zgodziły się rozwiązać umowę fuzji po upływie daty 15 sierpnia 2023 r." - powiedział Tower Semiconductor w oświadczeniu.

Wydarzenia te podkreślają, w jaki sposób napięcia między Stanami Zjednoczonymi a Chinami w kwestiach takich jak handel, własność intelektualna i przyszłość Tajwanu przekładają się na transakcje korporacyjne, zwłaszcza jeśli chodzi o firmy technologiczne.

W ubiegłym roku DuPont (NYSE:DDDe Nemours Inc zerwał umowę o wartości 5,2 miliarda dolarów na zakup producenta materiałów elektronicznych Rogers (NYSE:ROG) Corp po opóźnieniach w uzyskaniu zgody chińskich organów regulacyjnych.

Dyrektor generalny Intela Pat Gelsinger powiedział, że stara się o zatwierdzenie umowy z wieżą przez chińskie organy regulacyjne i odwiedził kraj jeszcze w zeszłym miesiącu, aby spotkać się z urzędnikami rządowymi.

Ale Gelsinger powiedział również, że Intel inwestuje w swoją działalność odlewniczą, która produkuje chipy dla innych firm, niezależnie od umowy z Tower.

W czerwcu premier Izraela Benjamin Netanjahu ogłosił, że Intel zgodził się wydać 25 miliardów dolarów na nową fabrykę w Izraelu, największą w historii międzynarodową inwestycję w tym kraju.

W rezultacie inwestorzy stracili nadzieję na transakcję Tower. Akcje Tower notowane na Nasdaq zakończyły we wtorek handel na poziomie 33,78 USD, co stanowi gwałtowne dyskonto w stosunku do ceny transakcyjnej 53 USD za akcję.

W drugim kwartale dział odlewniczy Intela odnotował przychody w wysokości 232 mln USD, w porównaniu z 57 mln USD rok wcześniej, ponieważ poczynił postępy w stosunku do rywali, takich jak lider branży Taiwan Semiconductor Manufacturing Co.

Wzrost sprzedaży odlewni wynikał z "zaawansowanego pakowania", procesu, w którym Intel może łączyć kawałki chipów wyprodukowanych przez inną firmę, aby stworzyć mocniejszy chip.

Popyt na chipy Intela ostygł po dwóch latach silnego wzrostu napędzanego pracą zdalną podczas pandemii, co skłoniło producenta chipów do cięcia kosztów. Zobowiązał się do obniżenia kosztów o 3 miliardy dolarów w tym roku, w celu zaoszczędzenia od 8 do 10 miliardów dolarów do końca 2025 roku.
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https://www.investing.com/news/stock-ma ... or-3155053

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Intel shares dip as data center chip recovery lags, company eyes AI laptop processors

Shares of Intel Corp (NASDAQ:INTC) fell by 4.5% to trade at $36.28 on Tuesday, following remarks by the company's CFO David Zinsner about a slower-than-expected recovery in the demand for data center chips. The announcement came during a meeting with analysts tied to the Intel Innovation customer event in San Jose.

Zinsner revealed that the inventory of data center processors is taking longer to clear than it did for the company's PC processor business, signaling a more delayed recovery in the data center sector. He also projected an "inventory digestion" phase for Intel during both, the third and likely fourth quarter of this year, before any positive turnaround in the data center business can be expected.

The CFO also noted a decline in the data center business in the September quarter, compared to previous quarters. This news led to some sobering reflections on the state of the chip company, resulting in a dip in Intel's stock.

In contrast to these challenges, earlier on Tuesday, Intel's CEO Pat Gelsinger announced plans to launch processors designed to power laptops capable of artificial intelligence (AI). This innovation is expected to strengthen Intel's product portfolio and could potentially offset some of the challenges facing its data center business.

https://www.investing.com/news/stock-ma ... CH-3178003

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Intel Gears up for IPO of Programmable Solutions Group

On Tuesday, Intel (NASDAQ:INTC)'s CEO Pat Gelsinger announced the transformation of the Programmable Solutions Group (PSG) into a semi-autonomous chip business. The move signifies a departure from Intel's previous revenue reporting practices, which were in place until 2021.

PSG specializes in Field Programmable Gate Arrays (FPGAs), chips that can be reprogrammed after installation. This capability allows for alterations in functionality, highlighting Intel's innovative approach within the chip industry. As an InvestingPro Tip points out, Intel is a prominent player in the Semiconductors & Semiconductor Equipment industry. The group was formed following the acquisition of Altera in 2015 and later expanded with the acquisitions of eASIC and Omnitek.

In recent years, PSG has seen significant growth, with revenues swelling from $1.9 billion in 2021 to $2.9 billion by mid-2023. According to InvestingPro's real-time metrics, Intel's revenue for the last twelve months (LTM2023.Q2) was reported at 54.04B USD. An anticipated downturn in the chip market, as suggested by analysts, could result in a temporary drop in revenues. Intel's revenue growth for the same period was at -26.36%, which aligns with the analysts' expectations of a sales decline.

Gelsinger confirmed that PSG will function autonomously and is being prepared for an Initial Public Offering (IPO) in the coming years to attract more investors. Starting from 2024, Intel plans to report PSG's financials separately, a strategy that echoes those used for the Mobileye IPO and the IMS Nanofabrication stake sale.

These fundraising initiatives are part of Intel's IDM 2.0 strategy, aiming to establish the company as a third-party manufacturer for fabless chip designers. Despite the recent challenges, Intel has maintained its dividend payments for 32 consecutive years, an InvestingPro Tip that might interest potential investors. As of LTM2023.Q2, the dividend yield was 1.39%.