Shares of Intel (INTC) fell over 10% in after-hours on Thursday despite stronger-than-expected 2Q earnings. It’s adjusted earnings of $1.23 per share jumped 16% year-over-year and topped analysts’ expectations of $1.11. However, the delay in launching next-generation chips weighed on its stock.
The company said that its 7-nanometer chips will go on sale by the end of 2022 or early 2023. The new schedule is almost a year behind its previous expectations.
Intel’s 2Q revenues grew 20% year-over-year to $19.7 billion and beat the Street estimates of $18.6 billion. The company’s quarterly results reflect strong chip demand driven by the growing adoption of cloud-based services and the necessity for hardware and software that facilitate remote work and distance learning.
Intel CEO Bob Swan said, “It was an excellent quarter, well above our expectations on the continued strong demand for computing performance to support cloud-delivered services, a work- and learn-at-home environment, and the build-out of 5G networks.”
Overall, INTC shows a Moderate Buy Street consensus. The average analyst price target of $63.25 suggests a 4.7% upside potential in the coming 12 months. (See INTC’s stock analysis on TipRanks).
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