What To Expect From Intel Q2 Earnings? - Intel (NASDAQ:INTC)

Intel Corp INTC will release its second-quarter earnings after the market close today.
The chipmaker's revenue guidance of $17.8 billion surpasses the analyst consensus of $17.55 billion.
However, it expects an EPS of $1.05, which is below the analyst consensus of $1.09.
It translates to a 10% Y/Y drop in Q2 sales to $17.8 billion and a profit of $4.2 billion, down 17.6% year-on-year.
Weaker laptop shipments in Q2 due to component crisis could affect Intel's revenue, Citigroup analysts noted, the Wall Street Journal reports
Wall Street expects a correction in Intel's data-center chip sales, which got a considerable boost in 2020 due to the pandemic and intensifying competition from Advanced Micro Devices Inc AMD and NVIDIA Corp NVDA.
Threats also loom in the form of Taiwan Semiconductor Manufacturing Co Ltd TSM and Samsung Electronics Co Ltd SSNLF with their capacity ramp-ups.
Intel's trump cards include the impending $30 billion GlobalFoundries acquisition, $20 billion+ chip investment plans in Arizona and a $3.5 billion expansion strategy for New Mexico with an additional tailwind from President Joe Biden's domestic chip manufacturing plans.
Price action: INTC shares traded lower by 0.71% at $55.83 on the last check Thursday.