Intel ($INTC) faces scrutiny as it prepares to release Q2 2025 earnings on July 31, following a 13% stock drop last week after Texas Instruments’ weak semiconductor outlook. Analysts expect Intel to report EPS of $0.10, down 23% year-over-year, with revenue of $12.9 billion, flat from last year, reflecting challenges in the PC and data center markets.
Intel’s foundry business, critical for competing with TSMC ($TSM), is under pressure from tariff-related cost increases on imported chips, as noted by market analysts. The company’s AI chip, Gaudi 3, aims to capture data center demand, but NVIDIA ($NVDA) dominates with an 80% market share.
Intel’s stock, down 5% year-to-date, trades at a forward P/E of 18, below the semiconductor sector’s 22. Of 25 analysts, 15 rate $INTC a “hold,” citing slow recovery in PC demand. Apple ($AAPL), which designs its own chips but relies on foundries like TSMC, contrasts with Intel’s manufacturing focus, highlighting divergent semiconductor strategies.
The broader market context, with 80% of S&P 500 companies beating Q2 earnings, offers hope, but Intel’s guidance will be critical. Investors should watch for updates on foundry progress and AI chip adoption, which could signal a turnaround. This reflects semiconductor sector volatility, with Intel’s performance impacting AI Stocks and Earnings Report categories.
