- Intel is set to report Q3 earnings on October 31, 2024, with low expectations due to a continual restructuring effort.
- Intel’s potential sale of Altera or Mobileye could raise billions of dollars for the chipmaker, aiding its restructuring and boosting investor confidence in its transformation.
- Despite low EPS estimates and a distressed valuation, Intel shares could revalue significantly if restructuring progresses and Gaudi 3 AI accelerators gain traction.
- Risks include continued cash bleeding, failure to catch up in AI accelerators to AMD and Nvidia, and lack of concrete plans for selling standalone businesses, which could disappoint investors.
Intel (NASDAQ:INTC) is set to report earnings for its third fiscal quarter on October 31, 2024 and investors and analysts alike don’t seem to expect much from the chipmaker. This is because Intel effectively threw in the towel in the last quarter and said that it will focus once again on a major restructuring that is expected to yield up to $10B in cost cuts and which is expected to come at the cost of growth.
In addition, Intel has been taking major criticism after it fell behind AMD (AMD) and Nvidia (NVDA) in terms of launching its own AI accelerators. I believe earnings estimates are very low ahead of the Q3 earnings report card, which should make it easy for the chipmaker to beat expectations. Further, Intel has the opportunity to lay out a strategic vision for the company and potentially announce the sale of Altera, or potentially even Mobileye. With shares being as beaten down as they are right now, I can’t help but like Intel as a turnaround play and believe a revival could be coming much sooner than investors think.
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