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Intel NASDAQ: IntC reported, it would seem, positive The financial results of the first quarter, exceeding expectations from adjusted profit per share (EPS) and income.

Nevertheless, this initial positive mood quickly disappeared from -very Caution look at the second quarterPredicting insane income per share.

This sharp contrast caused an Intel price reduction and revealed a constant identification task for the chip manufacturer under its new general director.

Despite significant measures to reduce costs, the market is currently focused on identifying the following significant Positive catalyst This indicates a true turn outside of fair efficiency.

From the first quarter to Q2 retreat

Despite Significant rhythm in the first quarter not related to GAAP Compared to estimates, the main problems are preserved. EPS without GAAP significantly decreased by 28% compared to last year to $ 0.13, and revenue remained at $ 12.7 billion. USA. The GAAP painting was weaker, and pure losses increased to the US dollar (0.19) per share from the US dollar (0.09) in the same quarter of last year. The gross margin also came across pressure, falling on almost six percent in annual calculus up to 39.2% based on non-Gaap, which is due to current costs and a combination of products.

The performance of the segment has offered some support: While income from the data center and AI (DCAI) increased by 8% of years, the larger excavation of customers (CCG) decreased by 8%, since the demand moved towards more old, lower processors due to economic uncertainty. It is noteworthy that Intel Foundry Services (IFS) continued to experience significant losses, with operating losses of $ 2.3 billion. USA per quarter.

This mixed productivity Q1 created a complex background for the management of Q2, which led to an adverse reaction on the market. Intel Projects Q2 income from 11.2 to 12.4 billion dollars. The USA, which indicates a consistent decrease even at a higher end (mid -11.8 billion US dollars). It is expected that gross profit without GAAP will decrease to about 36.5%, and a forecast that is not an EPS without GAAP in the amount of 0.00 US dollars does not imply an immediate improvement in profitability.

During the income call, the leadership exiled to several reasons for this cautious prospect: an increase in macroeconomic uncertainty, which can reduce expenses; uncertain consequences of world trade policy and tariffs; The product is inclined to the chips of customers with a low level of margin; current cost costs for Intel 18a Production of extension production; And even restrictions on the throughput on the older node of the Intel 7 process, which is currently experiencing amazingly high demand.

Intel restructuring against the skepticism of the market

Faced with significant problems, Intel, led by Tan, realizes a significant operational restructuring. Reports immediately before a detailed announcement of income Potential dismissals exceeding 20% ​​of the labor forceWhich the general director described as necessary for organizational smoothing, reduction of bureaucracy and a more purposeful engineering approach. This follows the previous reduction in jobs and is consistent with the reduced objectives of operating expenses aimed at about $ 17 billion in 2025 and $ 16 billion in 2026.

Further emphasis of capital discipline, the purpose of gross capital costs at 2025 was reduced to $ 18 billion with $ 20 billion, which is due to the improvement of the use of existing assets under construction. These internal actions accompanie the efforts to simplify the portfolio, including Recent sale Nand Memory Business And the expected department of the control bag in the Altera FPGA unit, which is expected, will be completed in the second half of 2025. In addition, a more stringent return policy to participate, requiring four days a week on the spot, since September, was announced to improve cooperation.

Despite the magnitude of these changes, the market negatively reacted to the Q1 and Q2 leadership report. The price of Intel shares was sharply reduced on April 25, washing recent benefits and emphasized its inefficiency over the past year (about 35% decrease). The analytical community of Intel quickly answered by reducing the target prices for IntC shares in numerous firms.

A Consensus -rating has strengthened around a decreaseWith an increase in sales recommendations (now 5 of 31 analysts) compared to one purchase rating. The average 12-month target price fell to $ 22.23, which involves limited growth from Current trading levels of about $ 20.38 As of April 29.

Search for a sparks

Investors are questioned that it can positively affect Intel shares, given the predicted complex Q2 and reducing costs, perceived as reactive. The market requires tangible progress in key strategic areas that go beyond operational efficiency. A significant catalyst can be the successful deployment of Intel 18A processes, expected in the second half of 2025, followed by products such as products, such ‘Lake Panther’ Client processors by the end of the year. The achievement of these ambitious terms with strong performance and yield will confirm the Intel production strategy.

A Intel Foundry Services (IFS) The department also provides a vital opportunity. A significant announcement of the winnings in design from the largest external semiconductor firm (client “Kita”) will significantly confirm the aspirations of Intel Foundry and its competitiveness against the company for the production of semiconductors Taiwan NYSE: TSMField

Moreover, any clear indication of Intel possession or the restoration of market share in their main client calculations and enterprises of data processing centers against AMD NASDAQ: AMD And the emerging ARM competitors will be well accepted.

The faster than expected, a decrease in significant IFS operating losses can also significantly increase the confidence of investors. Finally, improvements in the global economy or a reduction in geopolitical trade issues affecting the semiconductor sector, although it is not directly controlled by Intel, may offer a useful impulse.

In anticipation of evidence

Intel’s Earnings in the first quarter of bit And the subsequent forecast gave a small clarity regarding its competitive position and progress in a turn. While income exceeded expectations, pessimistic Short -term prospects overshadowed this success, perpetuating Market uncertainty About the direction of the company.

The recently appointed General Director of LIP-Bu Tan solves frontal problems with significant dismissal and measures to reduce expenses aimed at promoting cultural changes and increasing efficiency. Nevertheless, investors indicate that these internal reforms alone are not enough for significant growth.

The emphasis is now based on successful execution and obvious results. Until Intel does not provide confirmed achievements due to the new implementation of products such as Panther Lake, according to the decisive process of 18A, provides large customers of foundry leaders, protects its market share or establishes clear path to profitability For his foundry services (IFS), his shares will probably remain under close attention, requiring significant positive events to restore investors’ trust.

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