Intel (NASDAQ: INTC)

Q1 Earnings Preview

  Intel (NASDAQ: INTC)  Q1 Earnings Preview Intel (NASDAQ: INTC) announced its Q1 results this year after the market close on Thursday. The 25 % increase in the stock showed that investors were optimistic about growth. Intel stock rally closed promisingly the first quarter of 2021, after the stock had gone through several tough years. The company announced a comeback plan that could help Intel maintain its role as the world's largest chip maker after many missteps that hurt sales. New Chief Executive Pat Gelsinger said after the announcement that this rally accelerated in March. In February, Intel commissioned Gelsinger, former president of VMware (NYSE: VMW), who had previously spent years on the engineering side, to lead the troubled semiconductor giant. The dismissal of the former president was due to Intel's inability to manufacture the next generation chips, outpacing competitors who had transferred most of their production to Taiwan Semiconductor Manufacturing (NYSE: TSM). These manufacturing disruptions helped competitors gain market share while severely penalizing Intel shareholders. Intel's stock had declined last year as other chip makers benefited from increased demand. Despite recent momentum in Intel stocks, which closed Wednesday at $ 63.70, investors don't expect a big earnings surprise when the company publishes its first quarter report later today. Sales are expected to decrease 10 % this fiscal year, after an 8 % increase in the previous year.

Intel (NASDAQ: INTC) announced its Q1 results this year after the market close on Thursday.

20 Billion Dollar New Foundry Business Amid these volatile performances, Intel is trying to reverse its course fueling investor optimism. Last month, Gelsinger unveiled a grand plan to create a new $ 20 billion foundry business to produce chips for other companies, and said on Intel's analysts day: "Intel is back. We will be a leader in the market and satisfy new foundry customers. Because the world needs more semiconductors. We will take a powerful and meaningful step to fill this gap." Despite this statement, some analysts were skeptical. Repeating his purchase note with a target of $ 70 per share at Intel in January, JP Morgan analyst Harlan Sur said he trusted Gelsinger for his past success, but hard times awaited him. Bottom Line Companies must spend massively, as in the plan Intel announced last month, to succeed in this global race.  

Source: https://www.investing.com/

 

You may also be interested in:

 

FAANG Stocks -General Status of FAANG Stocks