Benzinga | Jul 22, 2021 02:02PM EDT

What To Expect From Intel Q2 Earnings?

* Intel Corp (NASDAQ: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 (NASDAQ:AMD) and NVIDIA Corp (NASDAQ:NVDA).

* Threats also loom in the form of Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) and Samsung Electronics Co Ltd (OTC: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.