Intel (INTC) Stock Climbs Amid Talks of Layoffs
Intel (INTC) stock is trading higher on Wednesday amid an overall market climb and talks of layoffs at the company. A report from Bloomberg signaled that the chipmaker is planning to cut more than 20% of its staff. The layoffs are part of Intel’s bid to streamline its operations, Bloomberg reported, citing a person with knowledge of the matter.
Intel in August previously announced a plan to lay off 15% of its workforce as part of a $10 billion cost-savings plan. The company has made significant moves since the arrival of new CEO Lip-Bu Tan. Just last week, the chipmaker announced the sale of a 51% stake in its Altera chips unit to Silver Lake, a tech-focused private equity firm. The sale also prompted INTC stock to climb, with shares now up 3% total in the last five days. The stock climbed as much as 6% on Wednesday.
Intel Earnings Report On The Way
The US chipmaker is also set to announce its Q1 earnings report on Thursday, which has investors waiting. Indeed, investors are hopeful of a revival for Intel and INTC stock, as the shares have lost about 40% of their value in the past 12 months alone. For the first quarter, Intel is expected to report adjusted earnings per share (EPS) of $0.01 on revenue of $12.3 billion, according to Bloomberg consensus estimates. That’s down from the $0.18 per share and $12.7 billion Intel reported in the same period last year. Furthermore, analysts expect Intel to report client computing revenue of $6.9 billion, down from $7.5 billion in Q1 2024, with both laptop and computer chip sales declining year over year.
Also Read: Why Magnificent 7 Stocks are Rallying Today: AAPL, AMZN, & More
Intel is also expected to face an uphill battle due to looming tariff threats, like most top chipmakers. While Intel produces the bulk of its chips in the US, it is still susceptible to tariffs on laptops and other systems built in China. And while laptops and other computers are exempt from tariffs for now, the Trump administration has said that it plans to reintroduce duties on those devices when it launches tariffs on semiconductors in the coming weeks and months.
INTC is currently trading near the bottom of its 52-week range and below its 200-day simple moving average. CNN Analysts are wary about Thursday’s earnings report, and most experts advise holding onto the stock, not buying or selling specifically.
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Intel (INTC) Stock Climbs Amid Talks of Layoffs
Intel (INTC) stock is trading higher on Wednesday amid an overall market climb and talks of layoffs at the company. A report from Bloomberg signaled that the chipmaker is planning to cut more than 20% of its staff. The layoffs are part of Intel’s bid to streamline its operations, Bloomberg reported, citing a person with knowledge of the matter.
Intel in August previously announced a plan to lay off 15% of its workforce as part of a $10 billion cost-savings plan. The company has made significant moves since the arrival of new CEO Lip-Bu Tan. Just last week, the chipmaker announced the sale of a 51% stake in its Altera chips unit to Silver Lake, a tech-focused private equity firm. The sale also prompted INTC stock to climb, with shares now up 3% total in the last five days. The stock climbed as much as 6% on Wednesday.
Intel Earnings Report On The Way
The US chipmaker is also set to announce its Q1 earnings report on Thursday, which has investors waiting. Indeed, investors are hopeful of a revival for Intel and INTC stock, as the shares have lost about 40% of their value in the past 12 months alone. For the first quarter, Intel is expected to report adjusted earnings per share (EPS) of $0.01 on revenue of $12.3 billion, according to Bloomberg consensus estimates. That’s down from the $0.18 per share and $12.7 billion Intel reported in the same period last year. Furthermore, analysts expect Intel to report client computing revenue of $6.9 billion, down from $7.5 billion in Q1 2024, with both laptop and computer chip sales declining year over year.
Also Read: Why Magnificent 7 Stocks are Rallying Today: AAPL, AMZN, & More
Intel is also expected to face an uphill battle due to looming tariff threats, like most top chipmakers. While Intel produces the bulk of its chips in the US, it is still susceptible to tariffs on laptops and other systems built in China. And while laptops and other computers are exempt from tariffs for now, the Trump administration has said that it plans to reintroduce duties on those devices when it launches tariffs on semiconductors in the coming weeks and months.
INTC is currently trading near the bottom of its 52-week range and below its 200-day simple moving average. CNN Analysts are wary about Thursday’s earnings report, and most experts advise holding onto the stock, not buying or selling specifically.
Read More