Mixed Outlook on Intel Amid Lingering Challenges
"All right, let's get to Intel. Man, I just barely making it with this one. It was up 7.7% earlier in the session. uh intraday finishing the day with just a gain of .3%. But I got to say initially we felt like investors were feeling a little bit more upbeat about the Intel story and maybe some of the turnaround uh happening uh upbeat forecast focused uh though uh investors kind of shifting their focus from maybe the turnaround to saying there's still some lingering challenges."
The speaker comments on Intel's intraday performance, noting initial optimism about a turnaround that has since dampened due to persistent challenges. The sentiment remains mixed as investors reassess the company’s prospects.
Market Reaction to Intel's Earnings Beat
"Look at Intel. Shares gained after the company delivered a stronger than expected Q3 with both earnings and guidance beating Wall Street estimates up 8%. And if you don't, Decker is an example. The shares tumbled 12% despite delivering a Q2 beat. They beat, but it's a softer full-year guidance. That's the problem. The market is priced for perfection."
The speaker compares Intel's robust earnings and guidance, which led to an 8% gain, against other companies that underperformed despite beats, highlighting market intolerance for anything less than perfection.
Intel Rebound and Comeback Commentary
"Intel shares in the green up nearly 8% on the back of earnings, which showed that they have returned to profitability. They also gave an encouraging forecast after seeing the PC market rebounding. It is suggesting that this chipmaker is making progress in a long and challenging comeback attempt. Now, it seems like it is on the right track, but it's also been on the right track ever since that US government uh stake had made it one of the worst performing chip stocks into one of the best. Intel shares are up some 90% year to date and possibly today we can make that 100% with this pre-market move of Intel up 7.9%."
The commentary highlights Intel's earnings success and turnaround, noting a significant rally and a positive forecast which emphasizes its comeback after past underperformance.
Intel Makes a Comeback with Gov Investment and Profitability Return
"We are at ticker INTC. It shares have been up as much as 7%. So, it's making some progress on this comeback. It's had a really tough year. Um, there were concerns over whether Intel can manufacture products that pull in customers again. So, the good news, it returned to profitability, gave an upbeat revenue forecast. Uh, fourth quarter sales, they're roughly 13.3 billion, just below Wall Street's estimates, but some analysts still including revenue from a unit that Intel just spun off. Uh, money that wasn't part of the company's forecast. But this all this good news though it comes after Intel secured an investment from the go US government that we know about who won backing from companies like Nvidia and Soft Bank. So investors really like those deals and they send Intel shares up 90% this year."
The transcript highlights Intel (INTC) showing signs of recovery, noting a recent 7% share increase, return to profitability, and a positive revenue forecast despite a challenging year. The government-backed investment is seen as a catalyst for renewed investor confidence, contributing to a strong rally with shares up 90% year-to-date.
Intel Turnaround Optimism
"Well, let's dig into shares of Intel. We did see Intel hitting its highest level since August of last year now pairing up about 510 of a percent. But this of course after the company reported an upbeat revenue forecast. They're really citing demand for personal computers here. And we are seeing the company returning to profitability for the third quarter. So this is really sparking optimism for a turnaround story here."
The speaker highlights Intel's turnaround potential bolstered by an upbeat revenue forecast and a return to profitability in Q3, indicating growing optimism despite mixed Wall Street ratings.
Intel Earnings Excite With Demand Outpacing Supply
"Now, the final thing I want to take a closer look at is Intel. Intel is up roughly 8.1%. I will be covering their earnings on a deeper dive later tonight, but on the top level, they mentioned that for 2026, demand is outpacing supply, which is crazy. There were some exposts going around. They talked about it both in the data center side and in the consumer side. Current demand is outpacing supply, a trend we expect will persist into 2026. For the first time, it got me excited about earnings overall for some of my big players."
The speaker discusses Intel's strong performance, noting an 8.1% rise and robust demand outpacing supply across both consumer and data center segments. This exciting performance, unusual for Intel, suggests potential further earnings strength heading into 2026.
Bullish Outlook on Intel Ahead of Earnings
"We also have Intel's earnings on Thursday, and I'll just tell you that it's absolutely sitting bullish, and it's going to come down to earnings. It's got room to rip, but I would tell you that it's really going to come down to earnings. If they don't deliver a good earnings, this thing is already up at $40. Prices doubled from where it had consolidated. So, those who are up a lot are going to be very quick to take profit on even the slightest bearish news, but as it stands, it's positioned bullish."
The speaker offers an upbeat view on Intel, noting that the stock is in a bullish position ahead of its earnings on Thursday. While acknowledging that the stock could experience some profit-taking if earnings disappoint, he maintains a bullish stance overall, pointing to room for further upside given its current technical performance around $40.
Government Involvement as a Catalyst for Intel
"The US government just bought a stake or they're buying a stake in Intel. Why? They want foreign chip manufacturers to build stuff in the United States. Come to us, come to the state, come, we will give you tax credits. That's real money, real flowing that will lead to investment return. When government is focused on something, it's really hard to stop that and prevent it and money will flow there and move that way."
The speaker highlights the government’s active role in influencing the semiconductor industry by taking stakes in companies like Intel to incentivize domestic production. This commentary implies a positive catalyst for Intel as government backed initiatives could lead to a boost in investment returns.
Do Not Buy Intel Stock Ahead of Earnings Due to Stretched Valuation and Volatility
"So, to answer the question, should investors buy Intel stock going into the earnings release? I don't see any urgency to do that. And especially when you combine the fact that the earnings release and the trading days following the earnings release tend to bring the most volatility to a stock price, with the additional volatility surrounding an earnings release coupled with the fact that the valuation already looks stretched, I would say no. I wouldn't be buying Intel stock ahead of the earnings release. I would wait for the figures to come out. Take some time to digest the financial figures and the updates from management."
The speaker advises against buying Intel stock before the earnings release, citing the heightened volatility typically seen post-earnings along with a stretched valuation relative to his intrinsic value calculation. He suggests waiting for the earnings figures and management updates to drive a more informed decision.
Intel Gains Momentum Amid New Customer Talks
"This is ticker INTC. Shares spiked, and they're up about 5.5% today after a report that the company is in early-stage talks to add AMD as a customer at its factories. The last few months, they have gained support from the White House ... and Bloomberg News had a report last week that it's also in talks for backing from Apple."
Intel (INTC) is benefiting from a series of strategic developments including early-stage talks with AMD and potential backing from high-profile entities such as the White House, NVIDIA, SoftBank, and Apple. These catalysts have supported a significant share surge and have enhanced investor sentiment around the company.