Intel Corporation (INTC) stock gained 2.2% in today’s pre-market trading session. The upside can be attributed to reports that INTC is preparing to undertake significant layoffs, with announcements expected later this week, according to Bloomberg. Interestingly, the news came ahead of INTC’s Q2 results, scheduled for release on Thursday.
Wall Street analysts expect Intel’s Q2 revenue to remain flat year-over-year at $12.92 billion. Also, INTC is expected to post earnings of $0.1 per share, down from $0.13 in the year-ago quarter.
It should be noted that job cuts are part of a broader cost-cutting initiative that aims to save $10 billion by 2025.
Insights from TipRanks’ Bulls & Bears Tool
As the company takes steps to reduce costs, analysts who are positive about INTC stock are still hopeful that the company will capitalize on growth in the AI PC market. Also, according to TipRanks’ Bulls Say, Bears Say tool, bullish analysts expect Intel’s market share in server CPUs to increase in 2025.
Nevertheless, bearish analysts are worried about the potential impact on Intel’s revenue after it lost the license to export certain consumer-related products to Huawei.
Is Intel a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating based on three Buys, 12 Holds, and one Sell assigned in the past three months. After a year-to-date decline of about 40%, the analysts’ average price target on Intel stock of $40.21 implies an upside potential of 33.46%.
