Intel said its is spinning out its artificial intelligence robotics and biometric RealSense and announced a $50 million funding round. RealSense, which makes tools and technology for robotics automation, said it plans to use the funding to develop new product lines and meet growing demand.
The latest trading day saw Intel (INTC) settling at $23.82, representing a +1.62% change from its previous close.
INTC cuts 529 jobs across Oregon to streamline operations, reduce complexity and refocus on core chip and data center R&D.
Intel (NASDAQ:INTC) stock increased almost 7% on Tuesday, despite the absence of significant stock-specific news to justify such a significant movement. The overall semiconductor sector has been on an upward trend in recent weeks, and Intel stock, which is still down around 32% over the previous year, may be attracting investor interest as a possible rebound opportunity.
Intel is shifting focus from the 18A node to 14A, prioritizing cost cuts and margin improvement over risky, capital-intensive innovation. Management's decision to abandon 18A is driven by weak customer demand, poor yields, and TSMC's superior 2nm process economics. Aggressive layoffs and divestitures are expected to boost margins and return Intel's revenue per employee to pre-pandemic levels.
I maintain my Buy rating on Intel, expecting a strong Q2 earnings beat and a potential stock price surge as the market underestimates its turnaround. Consensus estimates for Intel's Q2 EPS are setting a very low bar, creating a high probability for another significant earnings beat that could ignite the stock. The lack of a clear seasonal pattern suggests Wall Street's pessimism is overblown, especially given management's guidance for relatively stable sequential performance.
The three major microchip stocks in this analysis all look as if they are going higher over the longer-term, but they are moving at different paces, as would be expected. Nvidia continues to run hot, while the other two are in the process of turning it up to higher levels.
Intel (INTC) said it plans to start laying off hundreds of workers in Oregon as part of previously announced cuts under its restructuring plan.
INTC may gain from 35% chip tax credits as it accelerates U.S. manufacturing under its IDM 2.0 strategy.
In our previous coverage, we've detailed the stiffening tariff and regulatory implications on Intel Corporation on top of existing execution challenges pertaining to its ongoing turnaround plan. In the latest development, management's potential decision in accelerating Foundry's external volume roadmap from 18A to 14A could further pressure the company's already fragile fundamental outlook, while escalating execution risks. This accordingly skews INTC stock's near-term risk profile further to the downside, which the stock's resilience this year likely continues to underappreciate.
Intel (INTC) reached $21.88 at the closing of the latest trading day, reflecting a -4.25% change compared to its last close.
The chip maker is reportedly considering not offering its 18A node externally because it has been unsuccessful in attracting new customers.