Intel's Earnings Report on the Horizon: Market Focus on AI Chip Demand, Layoffs, and Potential Collaboration with Apple
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On July 23, Intel (INTC.O) is expected to announce strong earnings after the market closes on Thursday, driven by robust demand for its agent artificial intelligence chips. According to analysts surveyed by FactSet, Intel's adjusted earnings per share for the second quarter are projected to be 22 cents, with revenue reaching $14.4 billion. Srini Pajjuri, an analyst at RBC, noted that server CPU sales are expected to maintain double-digit growth throughout the year. Additionally, news of Intel's planned layoffs in its data center division may become a focal point of discussion. Analysts will also closely monitor whether Intel will disclose details about its collaboration with potential new client Apple. In May, reports indicated that Apple and Intel had reached a preliminary agreement for Intel to manufacture chips for some of Apple's devices. On June 18, Trump posted that Apple had agreed to collaborate with Intel to design and manufacture chips in the United States. Intel's earnings report and performance guidance will provide much-needed clarity on the duration of chip demand, a concern that has not yet been alleviated in the market.