Intel: Big Disappointment Deserves Aggressive Response

Summary

• Intel shares dropped over 20% after disappointing Q2 results, missing revenue and earnings estimates, with a barely profitable EPS of $0.02.
• Q3 guidance of $12.5-$13.5 billion fell short of analyst projections by $2 billion, prompting an aggressive cost-saving plan including layoffs.
• Despite cost-saving measures, Intel's future outlook remains uncertain, with the need for heavy investments in R&D and capital expenditures to remain competitive.
• Following Intel's Q2 report, I am downgrading the stock to "Hold" until the company can show that earnings and cash flows are stabilising.

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Intel (NASDAQ:INTC) shares crashed more than 20% in after hours trading, after the company reported a weaker than expected Q2 print, disappointing against Wall Street estimates on both topline and earnings. Notably, revenue in the June quarter fell YoY, while GAAP EPS came in

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Not financial advice