INTC - Back from the dead?

After two straight quarters of losses, Intel is finally back in the black.

Not only that, it has issued a stronger forecast.

The share price jumped after the results

So is it time to enter into this chip IDM?

YoY-wise, everything is down for Intel.

Under normal circumstances, share prices should be reacting negatively.

However, the gloomy forecasts provided a few quarters back, an estimate-beating performance has saw share prices jump.

Revenue of USD 12.9 billion beats estimates by USD 0.9 billion, gross margins are 2.3 ppt above outlook and EOS is a whopping USD 0.17 above outlook.

According to CEO Pat Gelsinger, even though actual results were not as gloomy as it last projected, the company is still very wary of the uncertainties.

Quoted, he still sees "persistent weakness" in all segments of its business through year-end, and that server chip sales won’t recover until the fourth quarter.

Even though the estimate-beating Q2'23, Intel has maintained its gloominess for its upcoming Q3.

Revenue targets to be between USD 12.9- 13.9 billion, which is down 13% YoY. Gross margins and EPS will also be down YoY.

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