Intel Corp (NASDAQ:INTC, ETR:INL) is expected to report better-than-anticipated second-quarter results after the bell tonight, helped by tariff-related pull-ins and a favorable product mix, according to Bank of America analysts.
“Q2 CPU [is] likely in-line to better on tariff related pull-ins,” the analysts wrote, though they cautioned that second-half results could disappoint as those benefits unwind.
Expectations for Intel’s PC segment are already running above seasonal norms, and new Panther Lake chips aren’t expected to ramp in volume until 2026.
CEO Lip-Bu Tan is expected to deepen Intel’s focus on profitability over market share, with analysts forecasting an additional 10-15% cut in capital and operating expenses.
“While these measures could bring semblance of profit in the near-term, we raise concern on future competitiveness of both Products and Foundry,” Bank of America noted.
Intel’s turnaround efforts, including progress on its 18A process node and a Windows 11 enterprise refresh cycle, could drive near-term upside, analysts believe. Still, ongoing competition from AMD and ARM, and a limited AI accelerator portfolio, remain key risks.
Shares of Intel were down about 2.4% on Thursday morning.