Shares of Intel Corp (NASDAQ:INTC) tanked in early trading on Friday, after the company on Thursday reported disappointing earnings for the second quarter.
Here are some key analyst takeaways.
- BofA Securities analyst Vivek Arya reiterated a Neutral rating and price target of $25.
- Rosenblatt Securities analyst Kevin Cassidy reaffirmed a Sell rating and price target of $14.
- Benchmark analyst Cody Acree maintained a Hold rating on the stock.
- Needham analyst Quinn Bolton reiterated a Hold rating.
Check out other analyst stock ratings.
BofA Securities: Intel delivered a sales beat, but this was "more due to conservative expectations setting around tariffs," Arya said in a note. The company is facing stiff competition from Advanced Micro Devices Inc (NASDAQ:AMD) and Arm Holdings PLC (NASDAQ:ARM) and lacks an AI pipeline, while its manufacturing business is capex-intensive, he commented.
Management guided to third-quarter sales of $13.1 billion, $500 million above consensus, the analyst stated. He added, however, that the gross margin outlook of 36% came in below the consensus of 37.3%.
Rosenblatt Securities: Intel reported revenues of $12.9 billion, topping consensus of $11.97 billion, benefiting from "customer pull-ins to mitigate tariffs," Cassidy said. Non-GAAP gross margins came in at 29.7%, short of the consensus of 36.4%, he added.
Management guided to third-quarter revenue of $13.1 billion at the midpoint, representing a 1.4% year-over-year decline, the analyst stated. "We see the Intel results – and, more importantly, management's commentary – as slightly positive, but clearly indicative of a long-term turnaround strategy," he further wrote.
Benchmark: Intel managed to beat revenue estimates due to the "healthy PC market environment and benefiting from pre-tariff pull-in activity," Acree said. The earnings, stripped of one-time charges, beat consensus by 9 cents per share, he added.
Management guided to only breakeven earnings for the third quarter, short of the consensus by 4 cents per share, the analyst stated. It could be "at least several quarters, if not years," before there are any material changes in "Intel's design or manufacturing competitiveness, its market share, its foundry business, or its broader financial picture," he further wrote.
Needham: Intel delivered a strong beat-and-raise quarter, with tariff dynamics continuing to influence customer orders, Bolton said. Management did not quantify the impact from tariffs, he added.
The guidance reflects that the company's performance in the back half of 2025 would be below typical seasonality due to the stronger-than-expected performance in the first half, the analyst stated. "We continue to believe Intel’s turnaround will take time as it is losing share in DC, is not yet competitive in AI, and Intel 14A at this point is dependent on attracting external customers," he further wrote.
Price Action: Shares of Intel had declined by 9.17% to $20.56 at the time of publication on Friday.
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