The market's patience is wearing thin! Intel Corporation's latest financial report urgently needs to present a roadmap to profitability.

date
24/07/2025
avatar
GMT Eight
When Intel releases its financial report this Thursday, its CEO must use a clear profit and revenue growth roadmap to convince the market, proving that the future stock price can achieve significant growth.
In April this year, the new CEO of Intel Corporation (INTC.US), Liwu Chen, told investors in his first earnings call that it would "take time" to turn around the struggling chip maker. However, just three months later, investors' patience seems to be running out. Indeed, since the announcement of Liwu Chen taking over as CEO of Intel Corporation in March, the company's stock price has risen by about 19%, but it pales in comparison to its competitors. For example, during the same period, NVIDIA Corporation (NVDA.US) saw its stock price soar by nearly 50%, while AMD (AMD.US) saw a 64% increase. Therefore, when Intel Corporation announced its earnings this Thursday, its CEO had to convince the market with a clear profit and revenue growth path, proving that future stock prices could see significant growth. Joe Tiga, manager of Rational Equity Armor Fund, said, "I hope this earnings report will give us some answers." "Intel Corporation still has a lot of potential, but we have reduced our holdings and turned to other chip stocks." The news of Liwu Chen replacing the former CEO, Pat Gelsinger, as CEO of Intel Corporation initially excited investors. However, as time passed, market sentiment gradually cooled. While Liwu Chen has started cutting costs, he has not yet set a new clear strategic direction for the company facing dual pressure on market share and new factory construction. Wall Street expects that Intel Corporation's second-quarter revenue will decrease by 7% year-on-year to $11.9 billion, with a loss of $0.31 per share. The company itself predicts that profitability will not be restored and revenue growth achieved until at least the middle of next year. Liwu Chen has pledged to cut operating expenses and reduce capital expenditures by about $2 billion this year. However, Intel Corporation has only informed about 4,000 employees (4% of the total workforce) that their positions will be cut. Wall Street views this as far from enough. KC Rajkumar, analyst at Lynx Equity Strategy, wrote in a research report, "The upcoming earnings report is most crucial in determining whether Intel Corporation can provide a credible path to breakeven. It's not just about cutting costs; revenue must also grow." For Intel Corporation, the most crucial opportunity lies in profiting from the wave of artificial intelligence (AI) infrastructure construction, which may be the biggest business opportunity in the history of the semiconductor industry. However, the market is currently dominated by NVIDIA Corporation, and Intel Corporation faces a huge challenge if it wants to enter. Investors also hope to see two signals: large customers signing contracts to use Intel Corporation's foundry services, and Intel Corporation's in-house chips regaining market share. Currently, the market outlook for Intel Corporation remains pessimistic. Among the 52 analysts tracked by Bloomberg, only 4 recommend buying Intel Corporation stock, 42 recommend holding, and 6 recommend selling. Their average 12-month target price is $21.93, nearly 7% lower than Intel Corporation's closing price of $23.49 on Wednesday. Analyst Stacy Rasgon of the investment bank Bernstein summarized the severity of the problems Intel Corporation is currently facing in a research report. She said, "Do Intel Corporation's earnings data still matter now? Can new products reverse the decline in market share? Or is it all too late?"