Intel Corporation (NASDAQ: INTC), the multinational technology giant, is potentially facing a revenue and earnings hit as it approaches its second-quarter financial results release on August 1st. Wells Fargo has recently lowered its Q2 earnings per share (EPS) estimate for Intel to $0.09, with a predicted revenue of $12.87 billion.
The company's downward revision stems from a significant regulatory setback. The U.S. Department of Commerce has revoked Intel's export licenses for Huawei, particularly affecting the sale of laptops and smartphones. This decision deals a blow to Intel's revenue streams and reflects the ongoing tensions between the U.S. and China in the domain of tech trade.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
In contrast, Advanced Micro Devices (AMD), a key competitor in the semiconductor industry, has maintained stable projections from Wells Fargo. Analysts have kept their forecasts unchanged with an anticipated EPS of $0.67 and revenue of $5.68 billion for Q2 2024. Attention is especially focused on AMD's MI300 datacenter GPU ramp, which stands to be a crucial driver of performance and investor sentiment.
Market estimates for Intel's Q2 2024 were more optimistic prior to the Huawei ban, projecting an EPS of $0.10 and revenue of $13.02 billion. However, the reality of geopolitical influences on trade has necessitated a reassessment of Intel’s financial outlook.
AMD is slated to present its Q2 2024 financial results around July 30, with consensus estimates closely aligning with Wells Fargo's, indicating an EPS of $0.68 and revenue projections at $5.72 billion. Their upcoming earnings release remains highly anticipated by investors looking to gauge the company's trajectory in the competitive semiconductor landscape.
The contrast between Intel and AMD's projections underscores the differing impacts of regulatory actions on corporate financial performance. Intel is grappling with immediate challenges posed by policy decisions, while AMD continues on a steadier path. As the semiconductor sector remains a backbone of the digital economy, the ripple effects of such regulatory measures will be closely scrutinised by stakeholders worldwide.
