Intel will report its earnings after the close. According to analysts:
- Expected Adjusted EPS: $0.45, a significant improvement from last year's Q4 earnings of $0.10 per share.
- Expected Revenue: $15.2 billion, higher than the $14 billion reported in the same quarter last year.
For the important Data Center and AI Segment:
- Revenue expectations are forecasted to be $4.1 billion for the quarter, a decrease from $4.4 billion in Q4 2022.
- Competitive Strategy: The segment is crucial for Intel to compete with rivals like Nvidia and AMD. Focus on the Gaudi3 accelerator for generative AI software and services.
Shares of Intel in 2023 rose by 90%. That is the good news. The not-so-good news was it fell -47% in 2022. The closing level in 2021 year was around $51.50. The current price is at $49.29. So although the price gained 90% last year, it was just re-couping the losses from 2022. Move above $51.50 and it may be a good signal for the stock. The 61.8% of the move down from the all-time high comes in at $52.24. Conversely, a move below the 50% at $46.98 would tilt the technical bias to the downside.
Options on Intel are implying a 7.7% swing for the shares either up or down. That is close to the average of 7.4% over the last 8 quarters according to Trade Alert. That is a +/-$3.81. From current levels, it implies a range of $45.71 on the downside and $53.33 on topside.
An interesting breakdown of Intel vs Nvidia:
Nvidia period ending Jan 2023:
- EPS $0.88
- Rev 6.051B
Est for Jan 2024:
- EPS: $4.15
- Rev: $20.13B
Intel period ending Dec 2022:
- EPS: $0.10
- Rev: $14.04B
Est for Dec 2023
- EPS $0.45
- Rev: $15.15B
