Intel reported a surprisingly strong set of Q2 earnings last week. Revenue came in at $12.9 billion, above expectations, and they turned a profit of $0.36 per.
Intel reported a surprisingly strong set of Q2 earnings last week. Revenue came in at $12.9 billion, above expectations, and they turned a profit of $0.36 per share, while the Street was expecting them to lose money. The company also guided Q3 EPS above estimates, while their revenue guide was a bit light.
With a guidance like that, most companies would have faced a mixed reaction from the stock market, but Intel is not a normal company in normal times. Consequently, their stock soared in after-hours trading. Despite this positive news, it’s important to remember that Intel is not out of the woods yet.
Editor’s Note:
Guest author Jonathan Goldberg is the founder of D2D Advisory, a multi-functional consulting firm. Jonathan has developed growth strategies and alliances for companies in the mobile, networking, gaming, and software industries.
Our thesis on Intel holds that the company faces three sequential challenges: rectifying their manufacturing process, reigniting their product portfolio, and subsequently populating their fabs with Intel Foundry Services (IFS).
The Intel team gave a pretty solid update on that first challenge. Their process plan – 5 nodes in 4 years – is on track. Their first EUV node is now entering production, and the crucial 20A node seems ready for imminent production.
