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Q2 earnings results are expected for Intel (INTC) after today’s close, and investors will focus on the performance of Intel’s data center unit, which has struggled to maintain its once-dominant position in the face of competition from Nvidia (NVDA) and Advanced Micro Devices (AMD). Any positive results could inspire investors after recent quarters saw Intel’s profits fall amid weak demand for computers and its own heavy spending to regain market leadership.
Intel’s Q2 earnings are expected to fall -47 cents a share on revenue of about $12 billion, representing a -22% decline from the year-ago period. According to Blomberg Intelligence, Intel’s full-year sales are seen falling -18.5%, compared with the decline of -8.9% expected for the chip sector overall. Intel trades at 2.6 times estimated sales, a discount to its 10-year average and the Philadelphia Stock Exchange Semiconductor Index ($SOX).
