Intel’s CEO search key search, because chip manufacturers will release lower income

(Reuters) -Intel will face investors’ review in its CEO search on Thursday results on Thursday, because chip manufacturers have stared at the weak PC sales and their share in the data center market has decreased, and their income is again A significant decline.

This struggling company fired Pat Gelsinger, CEO last month, and named two temporary co -hosts to doubt their plans to establish a contract chip manufacturing business. This is A strategy advocated by Gelsinger.

Investors want to know: “What is the strategic plan that Intel brings back from ashes?” Synovus Trust’s senior investment portistor Daniel Morgan said the company has a chip manufacturer’s stock.

Intel plans to use its contract manufacturing business (or casting plant) as an independent department. Temporary co -chief executives, Michelle Johnston Holthaus and David Zinsner last month, said that if Intel’s 18A chip production technology plans this year, this year If it is not successful, the derivative of the business may appear.

Intel’s Northland Capital said that Intel’s stock price should be $ 28, and its market value exceeds $ 120 billion.

This is higher than the current market value of about $ 85 billion. Last year, Intel accounted for 60 % of the annual performance of at least 50 years of annual performance, because the company tried to restore its leading advantage in the manufacturing industry and missed the AI ​​BOOM led by Nvidia.

Intel design and manufacturing chip-Most chip companies have abandoned a method of abandoning the “vague” model to outsourcing production, which is considered more cost-effective.

The high cost of trying to catch up with the leading chip manufacturer TSMC makes Intel’s asset liability statement tense and stress cash flow. At the same time, many U.S. government officials regard Intel as the key to maintaining a strategic American chip manufacturing knowledge.

Northern analysts said that for Intel, “the total of parts exceeds its market value.”

According to the data compiled by LSEG, analysts still expect to increase the gross profit margin of Intel’s fourth quarter by 9 percentage points to 39.4 %, but the income is low.

The revenue is expected to decline by 10.4 % to $ 13.81 billion. Analysts estimate that Intel will predict revenue by 1 % this quarter.

Its data center revenue (including server chips) may decrease by more than 15 % in the fourth quarter, which will marked the 11th quarter of the unit’s continuous decline.

Large cloud providers such as Microsoft spend more on special AI chips, while there are fewer traditional server processors provided by Intel.

In October last year, it canceled the forecast of 2024, that is, it will sell the GAUDI AI chip worth more than $ 500 million, which positions it as a cheap choice for NVIDIA’s expensive processors.

Intel has also lost its share in the data center CPU market and personal computer segment (its largest income share), and handed it to its competitors AMD.

According to Mercury Research, its share in the X86 CPU market in the third quarter of 2024 decreased by about 4 percentage points, and AMD increased a lot.

As the sales of these devices remain unchanged, Intel’s PC income is expected to fall by more than 11 % in the fourth quarter.

Susquehanna analysts said the department’s performance may be buffer in the stock of December, before the potential tariffs of US President Donald Trump.

Ryuta Makino, an analyst at Intel investor Gabelli Funds, said, despite this, “expectations are low” in general. “Intel may be easier than these expectations.”

(Report by Arsheeya Bajwa in Bangalore; editors of Aditha Soni and Arun Koyyur))