Earnings Preview: Intel & How To Trade It (INTC, KLAC, ASML, AMD)

Chip giant Intel

is going to report earnings after the bell, and all eyes will be watching Intel, as it impacts nearly ever segment of the economy, from semiconductors, to PCs, to automakers, to foods. Intel is expected to report earnings of 46 cents per share on revenues of $11.6 billion, compared to a year ago, when the company reported earnings of 43 cents per share on revenues of $10.30 billion. Wall Street will be particularly paying attention to gross margins during the report, as well as Intel's capital expenditures numbers. If Intel reports a higher than expected cap ex number, this could be beneficial for names like KLA Tencor

and ASML Holding N.V.

, which are both suppliers to Intel. If Intel is able to report better than expected numbers, and shows that PC sales aren't slowing as much as nearly everyone thinks, then Advance Micro Devices

may also see a small pop off an Intel earnings beat. Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products and other products.