TLDR
- Intel reports Q2 earnings Thursday after the close, with analysts expecting EPS of $0.22 on revenue of $14.4 billion.
- The stock is up roughly 178% year to date, but has pulled back 5.1% from its all-time high of $140.94 set on June 22.
- Intel plans job cuts within its data-center group as part of a push to become leaner.
- Investors want details on a reported chip manufacturing deal with Apple.
- Intel’s Data Center and AI unit is expected to bring in $5.54 billion in revenue for the quarter.
Intel heads into Thursday’s earnings report carrying a lot of weight — and a lot of gains.
The stock is up roughly 178% year to date, fueled by demand for its CPUs used in agentic AI workloads and a string of upbeat headlines. But it has slipped 5.1% from its all-time closing high of $140.94 hit on June 22, and is tracking toward its worst month since August 2024.
Analysts surveyed by FactSet expect Intel to post adjusted earnings of $0.22 per share on revenue of $14.4 billion for Q2. That would be a sharp turnaround from a loss of $0.10 per share on $12.9 billion in revenue in the same period last year.
The company’s market cap currently sits at around $515.77 billion.
Apple Deal in Focus
One of the biggest items on investors’ watchlist is whether Intel provides more detail on its reported deal with Apple.
The Wall Street Journal reported in May that Apple and Intel had reached a preliminary agreement for Intel to manufacture chips that power Apple devices. Then, in June, President Trump posted on social media that Apple had agreed to work with Intel to design and build chips in the U.S.
Investors have been waiting for official confirmation and details from Intel directly. The earnings call Thursday is likely their best near-term shot at getting them.
CEO Lip-Bu Tan has been pushing a turnaround story built around focus and efficiency. On the last earnings call in April, he pointed to agentic AI as a key driver: “This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”
RBC Capital Markets analyst Srini Pajjuri backed that view Monday, writing that server CPU volumes are expected to grow double-digits through the year. He rates the stock Sector Perform with an $80 price target.
Job Cuts on the Agenda
Intel also confirmed this week it plans to cut jobs within its data-center group.
A company spokesperson told Barron’s the cuts are part of a broader strategy to “become a more focused and efficient company.” The number of employees affected has not been disclosed.
The market actually responded positively to the layoff reports when they surfaced in July — a sign that investors are on board with Tan’s cost-cutting approach.
For the quarter, Intel’s Data Center and AI unit is forecast to generate $5.54 billion in revenue, with the foundry business expected to add $5.48 billion.
Intel also announced in May that it would become an official partner of McLaren, a move that added another headline to an already busy year of news flow.
The stock has gained approximately 336.8% over the past year, according to BahaWealth data.
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