Crispr Therapeutics shares tumble after significant earnings miss
Despite these challenges, Intel stock rose in aftermarket trading, possibly due to market positioning ahead of the earnings release and speculation that the situation could prompt significant changes. Bernstein’s stance remains cautious, advising against investment in Intel at this time and maintaining their price target and rating. The firm has adjusted its estimates to reflect the new information while maintaining its valuation outlook. InvestingPro’s comprehensive analysis indicates a FAIR Financial Health Score of 1.86, with particularly strong relative value metrics. For a complete understanding of Intel’s position and potential, access the detailed Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks, offering expert analysis and actionable intelligence for informed investment decisions. InvestingPro’s comprehensive analysis indicates a FAIR Financial Health Score of 1.86, with particularly strong relative value metrics. For a complete understanding of Intel’s position and potential, access the detailed Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks, offering expert analysis and actionable intelligence for informed investment decisions. The company’s Client Computing Group (CCG) and Network and Edge Group (NEX) performed better than anticipated, while the Data Center and AI Group (DCAI) met projections. Gross margins were reported at 42.1%, approximately 260 basis points above forecasts, benefiting from an unexpected CHIPS Act advantage and higher revenues, although this was somewhat offset by inventory reserves for Gaudi.
Despite these challenges, Intel stock rose in aftermarket trading, possibly due to market positioning ahead of the earnings release and speculation that the situation could prompt significant changes. Bernstein’s stance remains cautious, advising against investment in Intel at this time and maintaining their price target and rating. The firm has adjusted its estimates to reflect the new information while maintaining its valuation outlook. InvestingPro’s comprehensive analysis indicates a FAIR Financial Health Score of 1.86, with particularly strong relative value metrics. For a complete understanding of Intel’s position and potential, access the detailed Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks, offering expert analysis and actionable intelligence for informed investment decisions. All product segments, including CCG, DCAI, and NEX, are anticipated to decline at similar rates due to seasonality, cautious macroeconomic conditions, PC inventory levels, and competition. The gross margin forecast for Q1 is 330 basis points below consensus, with expectations of continued pressure as the company ramps up its Lunar project and aggressively prices products to gain market share. Intel also announced a reduction in gross capital expenditures to $20 billion.
Bernstein’s analysis suggests that investors may have become desensitized to Intel’s challenges, and that the company’s fundamental performance is temporarily overshadowed by the potential CEO transition and strategic decisions by the board. The delay of Intel’s lead product on the 18A node, Clearwater Forest, to the first half of 2026, the increasing outsourcing for Nova Lake relative to Panther, and openness to outsourcing future datacenter products raise concerns. Additionally, the cancellation of Falcon Shores as a marketable product indicates a setback in Intel’s AI accelerator strategy.
Despite these challenges, Intel stock rose in aftermarket trading, possibly due to market positioning ahead of the earnings release and speculation that the situation could prompt significant changes. Bernstein’s stance remains cautious, advising against investment in Intel at this time and maintaining their price target and rating. The firm has adjusted its estimates to reflect the new information while maintaining its valuation outlook.
In other recent news, Intel Corporation (NASDAQ:INTC) has seen several changes in its stock price targets by various analyst firms. Mizuho (NYSE:MFG) Securities, Stifel, Baird, and Roth/MKM have all reduced their price targets, maintaining a neutral rating. This adjustment follows Intel’s Q1 2025 guidance, which was set significantly below the typical seasonal trends. On the other hand, Rosenblatt Securities reaffirmed a sell rating on Intel’s stock with a target price of $20.
In recent developments, Intel has announced its collaboration with United Microelectronics Corporation on a pilot production line in Arizona and the construction of its new manufacturing complex, known as the Silicon Heartland, in Ohio. The company also plans to spin off its venture capital arm, Intel Capital, into an independent fund.
Intel’s earnings for the fourth fiscal quarter of 2024 are expected to align with current expectations, with revenue pegged at $13.8 billion and Non-GAAP EPS of $0.12. However, the first fiscal quarter of 2025 has a slightly negative forecast, with revenue forecasts at $13.0 billion and Non-GAAP EPS of $0.17.
Global Equities Research has encouraged clients to take advantage of the current weakness in Intel’s stock, citing strong prospects for the company’s AI initiatives. Meanwhile, the former CEO of Intel, Pat Gelsinger, purchased NVIDIA (NASDAQ:NVDA) stock during its recent dip, praising the potential of AI technology.
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