Intel to report Q2 earnings as chip stocks bounce off recent losses

Intel (INTC) volition study its 2nd 4th net aft the doorbell connected Thursday, aft the Philadelphia Semiconductor Index (^SOX) fell into a carnivore marketplace past week pursuing a run-up successful shares of semiconductor stocks implicit the past fewer months.

On Tuesday, Intel confirmed it volition laic disconnected employees successful its information halfway business, sending shares higher.

"As portion of our broader strategy to go a much focused and businesslike company, Intel's Data Center Group (DCG) is aligning its enactment to guarantee it has the close roles and skills successful spot to presumption the concern for semipermanent success," an Intel spokesperson told Yahoo Finance.

"We are committed to treating each impacted employees with respect and providing resources to enactment them done this transition," they added.

Intel banal has rocketed since the commencement of the year, rising 184% arsenic CEO Lip-Bu Tan continues an assertive turnaround effort. The institution has besides benefited from investments by the Trump medication and Nvidia (NVDA), arsenic good arsenic an accrued accent connected cardinal processing units (CPUs) arsenic the tech manufacture turns toward AI agents. 

Agents usage CPUs to execute tasks specified arsenic combing done databases oregon creating documents. That has made the once-downtrodden spot acold much fashionable aft years of playing 2nd fiddle to graphics processing units (GPUs).

"[Intel] is positioned to enactment 25-30% server CPU portion maturation successful 2026, benefitting from expanded capableness astatine [Intel] 3, robust request from hyperscale and AI [infrastructure] deployments, and agentic AI expanding CPU strength of AI clusters," KeyBanc Capital Markets' John Vinh wrote successful a enactment to investors up of Intel's earnings.

Intel has besides benefited from reports that its foundry concern is opening to motion connected big-name customers. According to The Information, Google (GOOG, GOOGL) has placed an bid with Intel to nutrient 3 cardinal of its customized Tensor Processing Units.

The study said Nvidia is besides looking into Intel arsenic an option.

The moves travel arsenic Taiwan Semiconductor Manufacturing Co. (TSM) struggles to support up with the immense request from clients, including Nvidia, AMD (AMD), Apple (AAPL), and others, amid the AI boom. That gives Intel a premier accidental to descent successful arsenic a secondary spot shaper to prime up the slack.

For the quarter, Intel is expected to study adjusted net per stock (EPS) of $0.21 connected gross of $14.43 billion, up from the -$0.10 per stock and $12.86 cardinal successful gross the institution saw successful the aforesaid play past year.

Intel's Data Center and AI conception is anticipated to make $5.54 cardinal successful the quarter, up 40% twelvemonth implicit year. Intel's foundry concern is expected to make $5.48 cardinal successful revenue.