Intel likely to have 'weak' Q2, guidance, Deutsche Bank says as firm cuts estimates
JasonDoiy

Intel (NASDAQ:INTC) is set to report second-quarter on July 28 and investment firm Deutsche Bank is expecting a "weak" report and guidance, as data points around the PC and the broader global economy continue to get worse.
Analyst Ross Seymore, who has a hold rating on Intel (INTC) shares, noted the company is "unlikely" to maintain its full-year 2022 guidance and the weakness is likely to persist into 2023 and 2024. 
"Aside from macro concerns, [Intel] has a plethora of co-specific concerns to work out as well, including inventory burn in PCs/CPUs and questions around the [company's] ability to meet its process technology and product milestones (Sapphire Rapids ramp?)," Seymore wrote in a note to clients.
"Given the already ambitious nature of [Intel's] turnaround strategy, the timing of this macro downturn is very unfortunate for the [company], and we now believe executing to its longterm roadmap may take longer than originally planned," the analyst added.
Intel (INTC) shares rose fractionally to $40.32 in premarket trading as the U.S. Senate passed a procedural vote on the $52B Chips for America Act.
Seymore also cut earnings estimates for the second-quarter, noting the weakness in PCs and potential for "uncertainty" in the data center, where it competes with Nvidia (NVDA) and Advanced Micro Devices (AMD).
The analyst now sees revenues and earnings per share falling by 2% and 6%, respectively. He also lowered full-year estimates to $73.7B in revenues and $3.35 per share in earnings, compared to guidance of $76B and $3.60, respectively. 
Seymore conceded that Intel's (INTC) valuation is "beginning to look compelling," trading at just 11 times 2023 estimates, but it's likely that shares will be "range-bound" over the next 12 months as worries over the global economy, competition and execution persist.
On Tuesday, Bank of America said Intel (INTC) was among several semiconductor companies that would likely benefit if the U.S. government passes stimulus for the industry.