Intel Reports Earnings Today. The PC Chip Business Might Be Improving. — Barrons.com
Intel is expected to report better-than-expected earnings for Q3, with revenue estimates at $13.2 billion and adjusted EPS of two cents. Analysts predict improvements in the PC chip business, driven by server strength and customer upgrades. The company is also set to begin high-volume production of its Panther Lake processors. Intel has raised capital through partnerships, including a $5 billion investment from Nvidia and an $8.9 billion investment from the U.S. government. The stock has risen 82% this year, outperforming the semiconductor ETF.
By Tae Kim
Intel might report better-than-expected computer processor sales when the chip maker posts its third-quarter results after the market close Thursday.
The Wall Street consensus estimate is that Intel will report revenue of $13.2 billion with adjusted earnings per share of two cents for the September quarter, according to FactSet. Analysts' estimate for the current quarter's revenue is $13.4 billion.
Intel, whose stock ticker is INTC, uses the x86 chip architecture in making the processors that act as the main computing brains for PCs and servers. Some analysts see improvements in the PC chip business.
"We expect INTC to report better results and higher guidance. INTC should benefit from broad-based server strength and customer upgrades to Granite Rapids [server processor]," KeyBanc Capital Markets analyst John Vinh wrote earlier this week.
Earlier this month, the company announced that the first products based on its Panther Lake architecture will enter "high volume" production at Intel's newest chip factory in Arizona later this year. The Panther Lake processors will be made on the company's latest 18A chip manufacturing process. The chips will ship by the end of the year with "broad market availability" starting in January, the company said.
Intel has been raising capital from a variety of sources. Last month, Intel announced a new partnership with Nvidia, part of which entails Nvidia investing $5 billion in Intel stock. In August, the company also announced an agreement for the U.S. government to make an $8.9 billion investment in Intel shares.
The company's stock is up 82% this year, versus the 30% gain for the iShares Semiconductor exchange-traded fund.
Write to Tae Kim at tae.kim@barrons.com
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