Intel (NASDAQ: INTC) is set to report its second-quarter results this Thursday, with Wall Street in a holding pattern as uncertainty surrounds the chipmaker’s foundry strategy.
All 11 analysts covering Intel maintain a “Hold” rating, with a consensus price target of $22, slightly below Friday’s close of $23. The company’s foundry division is the focus of investor concern, especially amid reports that new CEO Lip-Bu Tan is considering major changes that could trigger write-offs of hundreds of millions—or even billions—of dollars in chipmaking assets.
The move may signal a pivot away from contract manufacturing toward focusing more on Intel’s own product lines. UBS analysts noted this could be strategically sound but operationally challenging. UBS raised its target price to $25, while Wedbush held at $19 and HSBC at $22.
For Q2, Intel is expected to report $11.93 billion in revenue, down 7% year-over-year, and adjusted net income of just $74.5 million (2 cents per share). Revenue from the foundry business is projected to have fallen 7% to $3.98 billion.
Intel has also reportedly begun laying off thousands of workers in Oregon, as part of its ongoing restructuring plan.
Investors will watch closely for any announcements on Intel’s next strategic steps, particularly in its battle to compete with Nvidia and Apple in the advanced chip manufacturing space.