On Monday, Intel (INTC.US) saw its stock rise by 3.51%, outperforming both the broader U.S. market and the tech sector, primarily due to high praise for its latest processor, the Intel Core Ultra 9 275HX.
Recently, the benchmarking software PassMark updated its rankings, placing the Intel Core Ultra 9 275HX at the top, surpassing the AMD Ryzen 9 7945HX3D as the strongest laptop processor in terms of overall performance. Many reviewers, including PCWorld and TomsHardware, highlighted the processor's performance and improvements in laptop battery life.
Additionally, Intel's financial results for the fourth quarter of 2024, released last month, exceeded market expectations, indicating positive outcomes from its large-scale restructuring plan implemented in 2024. The financial report showed that Intel's fourth-quarter revenue decreased by 7% year-over-year to $14.26 billion, marking a decline for the third consecutive quarter, but better than the market expectation of $13.81 billion. The net loss was $130 million, whereas the same period last year reported a net profit of $2.67 billion. Adjusted earnings per share were $0.13, exceeding the market expectation of $0.12.
Despite the fourth-quarter revenue and profits being better than expected, Intel's guidance indicates that challenges lie ahead. The company expects first-quarter 2025 revenue to be between $11.7 billion and $12.7 billion, with the midpoint of the forecast being lower than the market expectation of $12.85 billion. The company anticipates that profit, excluding certain projects, will break even, while the market expects earnings per share of $0.08. Due to Intel's weak performance guidance, Wall Street analysts have chosen to remain cautious, waiting for further signs of recovery. Intel plans to hold a Foundry Direct Connect event on April 29 in San Jose, California, to share details about its foundry strategy, process technology, and advanced packaging and testing capabilities.
Meanwhile, investors and analysts are also focused on the appointment of a new CEO, who will determine the company's future and face various options, including potential spin-offs. Previous reports indicated that competitors are considering bidding for part or all of Intel's shares.
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(Source: uSMART HK)