Intel stock beats Q2 expectations, Benchmark reiterates Hold rating

Published 25/07/2025, 16:20
Intel stock beats Q2 expectations, Benchmark reiterates Hold rating

Investing.com - Benchmark maintained its Hold rating on Intel (NASDAQ:INTC), a $89.77 billion semiconductor giant, following the chipmaker’s second-quarter earnings report that exceeded expectations. According to InvestingPro analysis, Intel appears slightly undervalued at current levels.

Intel reported second-quarter results that surpassed analyst projections, with revenue approximately $930 million above forecasts and earnings per share beating estimates by $0.09, excluding one-time charges related to restructuring and equipment impairment.

The company’s performance benefited from a "relatively healthy PC market environment" and pre-tariff pull-in activity, according to Benchmark analyst commentary.

For the third quarter, Intel provided guidance with a revenue mid-point approximately $440 million ahead of consensus estimates, showing continued strength in its business outlook.

Despite the revenue guidance exceeding expectations, Intel projected lower sequential gross margins for the September quarter, resulting in a breakeven earnings per share forecast that falls $0.04 below prior consensus estimates.

In other recent news, Intel reported its second-quarter 2025 financial results, revealing key developments for investors. The company achieved revenue of $12.9 billion, surpassing both HSBC’s estimates and broader consensus expectations, which ranged from $11.8 to $11.9 billion. However, Intel’s earnings per share (EPS) significantly missed forecasts, reporting -$0.10 against an anticipated $0.01, marking an EPS surprise of -1100%. This earnings miss contributed to margin pressures, with the company’s gross margin reported at 29.7%, falling short of the 36.5% guidance. Additionally, Intel recognized $800 million in impairment charges and $200 million in one-time costs during this period. In light of these challenges, HSBC adjusted its price target for Intel, lowering it to $21.25 from $22.00, while maintaining a Hold rating due to ongoing earnings concerns. These developments reflect the financial hurdles Intel is currently navigating.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.