Intel Corporation (NASDAQ:INTC) is expected to post a 21% year-over-year drop in revenue to $12.2 billion when the semiconductor giant reports its second-quarter 2023 financial results after the close on July 27, according to analysts at Trefis.
They also forecast a net loss of $0.03 per share during the quarter, as the personal computer (PC) business remains in a slump due to factors such as the continuation of the pandemic trend of working remotely.
Trefis analysts noted that Intel has also been losing share to rival AMD, whose Genoa server chips offer a better price-to-performance tradeoff versus Intel’s current server processors, Forbes reported.
Other factors likely to weigh on Intel’s results include the company’s data center business continuing to face headwinds as demand from cloud computing and enterprise space remains mixed, they added.
As well, the analysts wrote that Intel is now betting heavily on becoming a foundry player, producing chips for other semiconductor companies, and competing with big industry players such as TSMC and Samsung Electronics (KRX:005930).
During its previous quarter (1Q), Intel posted its biggest quarterly loss in company history ($2.8 billion) but edged past analyst expectations on both the company’s top and bottom lines.
Shares of Intel eased 0.5% to $33.92 in early-afternoon trading on Wednesday but have climbed 27% year to date.
Contact Sean at sean@proactiveinvestors.com