Intel Q4 Earnings Preview: CEO Search, PC Demand, and Potential Spinoffs

Intel Corp. (NASDAQ: INTC) is scheduled to announce its fourth-quarter earnings on Thursday after the market closes. The upcoming report is eagerly anticipated, with several key areas of focus for investors and analysts alike.

Key Issues to Watch

One of the most significant items on the agenda is Intel's ongoing search for a permanent CEO following the unexpected retirement of Pat Gelsinger on December 1, 2024. Currently, David Zinsner and Michelle Johnston Holthaus are serving as interim co-CEOs while the board of directors seeks a suitable replacement.

Investors will also be keenly interested in any developments regarding potential spin-offs of business segments, particularly Altera and Intel Capital, reflecting the company's restructuring initiatives.

PC Market Outlook

Another focal point in the earnings call will be the state of Intel's PC sales and overall demand trends. The company's PC revenue is projected to decline by more than 11% due to subdued demand for AI-related PCs. This decline is particularly concerning given that Intel's data center revenue has been falling for the past ten quarters.

Analyst Predictions

According to analysts' consensus, Intel is expected to report earnings of 12 cents per share, with total revenues estimated at $13.81 billion. This would be a stark decrease compared to last year's earnings of 54 cents per share and revenues of $15.41 billion during the same quarter.

Rosenblatt analyst Hans Mosesmann has reiterated a Sell rating for Intel, assigning a price target of $20 ahead of the earnings announcement, signaling bearish sentiment from some quarters.

In contrast, Mizuho Securities has pointed out that proposed policies and potential tariffs could favor American chipmakers, including Intel. Nonetheless, the market remains skeptical about the immediate future.

Market Response

In premarket trading on Thursday, Intel's shares have shown slight movement, reflecting the cautious outlook among investors.

As the earnings release draws near, all eyes will be on how Intel addresses these key issues and navigates its path forward in an increasingly competitive market.

Earnings, Intel, CEO