With the highly anticipated report due today, Intel (INTC) is projecting a net loss of more than $950 million. The company is set to announce the earnings after the bell Thursday, as it looks to avoid a continued drop that began with its underwhelming Q2 earnings announcement.
The company has struggled to keep up with the growing AI demand. Moreover, the upcoming report doesn’t look like it will be a key drive for a turnaround any time soon. With the company contemplating a sale of its $17 billion Altera business, the stock may be stuck until more answers arise.
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Intel Q3 Earnings Arriving Halloween: What to Expect
The last two years have seen AI products dominate the information technology sector. Moreover, it has driven Wall Street, as companies like Nvidia (NVDA) are up almost 200% on the year. However, some companies have struggled to compete in the ever-shifting landscape.
Chief among them is Intel. The company passed up the chance to be an early investor in OpenAI before the meteoric rise of its ChatGPT generative chatbot. Moreover, they had reportedly contemplated purchasing Nvidia in 2005 and ultimately passed.
Also Read: Intel: Is Quantum Computing Key to an INTC Comeback?
Now, after Q2 struggles from underwhelming earnings, Intel (INTC) is currently projecting its Q3 report to note $955 million in net losses. According to a TradingView report, the projects estimate revenue to reach $13.03 billion. That would indicate an 8% fall against the same time period last year.
Its net losses would ultimately equate to a drop of 23 cents per share. The company is also contending with a stark decline in PC demand. One Raymond James analyst has said the company has a market perform rating but should be approached with caution. Until the discussion regarding potential acquisitions plays out, there is no positive sentiment expected in the medium term for the company.
