Earnings Report Preview | Will a 35% increase in stock price this year help Intel continue to rebound in Q3 performance?

According to Dolphin Research APP, Intel (INTC.US) will announce its third-quarter earnings after the US stock market closes on October 26th (morning of October 27th Beijing time). The market expects Intel's Q3 revenue to be $12.82 billion, with earnings per share of $0.20. In comparison, the revenue for the same period last year was $15.25 billion, with earnings per share of $0.59.

So far this year, Intel's stock price has risen by about 35%, while the S&P 500 index has risen by 11.4%. The market seems to be rewarding Intel for its improved fundamentals. Intel's management has taken strategic measures to advance the company's transformation plan, including divesting various non-core businesses and its stake in Mobileye's automotive business. In addition, Intel has also started to tap into the booming artificial intelligence semiconductor market.

The diversified business portfolio will help Intel establish a leadership position in the field of artificial intelligence. The company has indicated that it has sufficient financial resources to effectively compete for these growth opportunities. In the short term, Intel has already begun to benefit from a slight rebound in the personal computer market. Previously, the personal computer market experienced a significant decline due to disruptions related to the pandemic. In the previous quarter, although Intel's revenue from the personal computer business declined by 12% to $6.8 billion, its foundry business showed growth, especially in the "advanced packaging" business. Advanced packaging allows Intel to combine chip components from other companies to create more powerful chips. With other positive factors, the company is expected to improve its profit margin in the third quarter and for the rest of the year.

Having said that, the company still needs to deliver better-than-expected performance this week to support market optimism.